Bridging Loans Linked to Developments
Bridging Loans can be an excellent financing option for property developers who are looking to undertake new development projects. These short-term loans can provide the necessary funds to cover the initial costs of a new development, allowing developers to get their project off the ground while they wait for longer-term financing options to become available.
Build duration is typically between 12 and 24 months
Lending to 70% of Gross Development Value
Loans from £500,000 to £10,000,000
- Loans from £500k to £10m
- Generally, loan term up to 12 months but longer term can be considered
- Loan to Values considered on a case-by-case basis but generally up to 70% including interest
- Existing projects that have reached practical completion
As a leading lender specialising in property finance, our expertise encompasses a wide range of funding options, including residential and commercial development finance, bridging loans, and RLS funding supported by the British Business Bank. Contact a BLG team member today to find out more on how BLG can help your next project.
Typical Uses for Bridging Loans
Bridging Loans for development are typically used to finance the acquisition of land or properties, as well as the construction and development of new buildings. They can also be used to cover unexpected expenses, such as the cost of delays or other unforeseen issues that arise during the development process.
Throughout the housebuilding lifecycle, BLG provides a high level of support to its clients, including ongoing advice and guidance on market trends, financing options, and exit strategies.
BLG offer bridging loans for the following purposes:
- To acquire a new development site. This can include financing for land acquisition, site preparation, and planning permissions. We can even potentially help if the site has a limited or imperfect planning consent, working with developers to find creative solutions to financing challenges.
- To release funding from an existing transaction to make new investments. BLG can provide finance solutions to help developers release funds from existing projects and reinvest them in new opportunities.
- To release funds on completed developments for cashflow or other business needs. We can provide development exit loans to help developers release funds from completed developments for cashflow or other business needs. This can help developers to reduce finance costs, manage their cashflow more effectively, and fund their next project.
- BLG can provide short to medium-term finance solutions for commercial or other property assets. This can help businesses to meet their funding requirements and manage their cashflow more effectively.