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Whether you are looking to acquire land, renovate existing properties, or embark on a new construction project, bridging finance is a vital source of capital, propelling your property development endeavours to fruition.
At Clifton Private Finance, our bridging loan brokers are highly experienced in development finance and can help with:
Bridging finance from £50K to £25M
Loan terms of 1 to 36 months
Quick access to capital (5 to 7-day turnaround is often possible)
Monthly or rolled-up interest (where you pay all of the interest at the end of the loan term)
Loans with no upper age limit
Commercial and residential property finance
FCA regulated and unregulated bridging loans
Property bridging finance for individuals, sole traders, partnerships, limited companies and trusts
A bridge loan is a type of short-term loan for property development, with terms ranging from 1 to 36 months. They can cover construction and development costs throughout the timeline of a property development project.
The flexibility and speed of bridging finance make it an ideal choice for property developers. Traditional financing options often involve lengthy approval processes, hindering progress and delaying project commencement.
In contrast, bridging finance offers a streamlined approach, allowing you to access funds promptly and take advantage of time-sensitive opportunities.
For property developers, bridging finance can provide funds for several types of development projects, such as:
Buying development sites when their capital is tied up in existing projects.
Purchasing renovation or change of use projects that may not qualify for traditional mortgages.
Acquiring properties at auctions to redevelop them.
Undertaking build-to-let projects, where developers construct properties for the rental market.
Bridging finance for property development provides quick access to short-term funds for developers. It bridges the gap between immediate financing needs and long-term solutions.
Here's how it can help you with your property development projects:
Bridging finance offers fast access to capital, with a streamlined application process and funds available within days.
It provides temporary funding for 1 to 36 months until long-term financing or property sale.
Bridging loans range from £50,000 to £25 million, with options for repayment terms and interest payments.
It supports diverse development projects like site purchases, renovations, auctions, build-to-let, and self-build homes.
Loans can be secured against the development site or other properties to ensure better rates, allowing you to borrow more.
Funds can be received in stages, allowing interest payments on the capital already taken. Additionally, there are multiple ways in which you can repay interest - whether that's retained or rolled up to be paid at the end of the loan term.
Private Banks and lenders typically offer these types of property development loans through intermediaries, like bridging finance brokers, instead of dealing directly with the public. Therefore, applying through a broker to secure a property development bridging loan is advisable.
Property developers often secure short-term development finance against the development site but may also choose to secure the loan as a second charge on other properties they own. This allows them to obtain better rates or borrow more. When taking out bridging finance for property development, there are a few costs to consider.
Firstly, an arrangement fee is typically charged around 1% to 2% of the loan capital. This fee is paid when the loan is taken out. Additionally, interest is set on the loan, usually monthly, or it can be rolled up and paid at the end of the loan term.
Property development projects will often have drawdown facilities arranged, in which interest is only paid on the amount drawn down. This keeps borrowing costs down.
Another important aspect when applying for a bridging loan is specifying an exit strategy, explaining how the loan will be repaid.
Common exit strategies for property developers include:
Selling the developed property.
Selling previously developed properties.
Refinancing with a residential or buy-to-let mortgage.
We specialise in raising bridging finance on residential and commercial property developments. Through our professional service, we’ll help borrowers obtain the necessary funds at competitive rates for their specific requirements.
Specialist lenders will prefer borrowers with a proven track record in property development with relevant experience. Lenders assess your financial situation, including income, assets, and credit history.
Lenders also consider the property value you intend to develop and offer loans up to a certain percentage of its value (Loan-to-Value ratio).
With property development loans, lenders value a property, land, or development site based on the GDV (Gross Development Value).
This means that you will be able to take out a bridge loan based on the expected value of the completed development. However, you must be able to demonstrate how you can repay the loan within the agreed-upon term.
Lenders will conduct a property valuation to determine its current market value and evaluate its suitability as loan security. They assess the location, condition, resale value, and development feasibility.
The Financial Conduct Authority (FCA) regulates bridging finance in the UK. Working with lenders or brokers operating within the regulatory framework is vital to ensure transparency and consumer protection.
Bridging finance offers funding support at various crucial stages of the process.
Property developers can utilise bridging finance for a wide range of projects, including:
Bridging finance provides quick access to funds for purchasing land, particularly for time-sensitive transactions or property auctions. It enables developers to secure the desired plot without delays.
During the approval phase, bridging finance covers expenses associated with planning applications, surveys, and architectural designs. Developers can utilise these funds to navigate the planning process smoothly.
Bridging loans offer short-term capital for property refurbishment or construction projects. Whether it involves light or heavy renovations or extensive structural changes, developers can rely on bridging finance to finance these improvements swiftly.
Bridging finance acts as a bridge between project completions and securing long-term financing options like mortgages or refinancing, or development exit finance. This provides developers with the flexibility to repay the loan once they confirm the desired long-term financing solution.
You'll first want to research and identify lenders specialising in property development bridge finance. You can compare lenders for property development loans through our comparison software which pulls quotes from over 40 development finance lenders in minutes, and you can use it for free.
During the application process, you'll need to provide detailed information about your development plans and financial needs during the consultation.
The specific documents required may vary depending on the lender and the nature of your project, but commonly requested documents include the following:
Personal identification documents (passport, driver's license)
Proof of address (utility bills, bank statements)
Business plan or project proposal
Purchase and sale agreements or contracts
Valuation reports or property appraisals
Building plans and specifications
Planning permission or permits (if applicable)
Financial statements (personal and business)
Bank statements (personal and business)
Tax returns (personal and business)
Proof of income (pay stubs, rental income, etc.)
Depending on project feasibility, profitability, and financial standing, lenders will assess your application. The lender will provide a formal loan offer with detailed terms and conditions if approved.
It is always a good idea to thoroughly review and understand the terms of the loan and the offer beforehand. Once all requirements are met, the lender will disburse the funds, allowing you to proceed with your property development project.
There are several alternative options for development finance. Some popular alternatives include traditional mortgages, equity financing, joint ventures, mezzanine financing, development loans, and crowdfunding. These alternatives offer different terms, repayment structures, and funding sources, allowing developers to choose the option that best suits their needs.
At Clifton Private Finance, we offer tailored bridge finance solutions for property development projects. As experienced development finance brokers, we connect you with lenders who understand the intricacies of property development, providing personalised financing that aligns with your project requirements.
With access to the entire market and our extensive network of lenders, we secure competitive rates and favourable terms, giving you the financial edge you need. Our experienced team simplifies decision-making by providing expert guidance throughout your bridge finance journey.
We ensure clarity and support, making complex financial decisions easier to navigate. We diligently search for affordable and favourable finance options that suit your budget and objectives, enabling you to proceed with confidence.
Contact us today to discuss your property development needs and let us help you find the right bridge finance solution.
Yes, you can raise bridging finance for both residential and commercial property developments.
At Clifton Private Finance, we offer development finance with flexible terms for various properties, including residential (on a regulated basis), buy-to-let, HMO, investment, and commercial properties.
We also provide financing options for light refurbishment, heavy refurbishment, and bridging development finance for business purposes such as purchasing land or new premises.
The approval process for property development bridging finance can be fast. It is often possible to gain quick access to capital, with a turnaround time of 5 to 7 days.
Once you submit your application and the necessary documentation, the approval process can be completed within a week. However, it's important to note that the actual timeframe may vary depending on factors such as the complexity of the project, the lender's requirements, and the completeness of your application.
It may be challenging to secure bridging finance for property development with bad credit. Lenders typically assess creditworthiness during the application process, and a poor credit history can be a significant obstacle.
However, it's still possible to explore options by working with a bridging finance broker specialising in dealing with lenders who consider applicants with bad credit. They can help you navigate the process and find suitable solutions based on your circumstances, even if you're a first-time developer.
I approached Clifton Private Finance to help me get a mortgage as an Expat working in the Far East. I would normally 'cut out the middle man' on something like this and try to get myself a deal directly with the banks, but I am now sold on the broker concept and wouldn't hesitate to use Clifton Private Finance again. There were a number of complicating factors such as being an expat, the stamp duty holiday, the sheer amount I wanted to borrow and the fact I wanted it all wrapped up before the Stamp Duty holiday ended. It is clear to me now that the relationship that brokers have managed to foster with their banks means they can simply pull levers and make stuff happen that us ordinary folk cannot. Put simply, they are worth every penny, will take most of the stress out of the lending process, and seem to have access to deals that you just won't find on the internet. Thank you George and Jan for all your hard work!
Luther was excellent. Very clear in his advice and explanations of products and was able to move things on very quickly when we ran into difficulties with the estate agents. Without a doubt I would recommend Luther to all friends, family and colleagues. Luther was a joy to deal with and took a lot of the stress out of a troublesome transaction, from my end. I would view Luther as real asset to Clifton Private Finance Ltd.
The team at Clifton Private Finance has been outstanding, not only in helping me to obtain a mortgage on a slightly unusual home, but also in continuing to provide support and liaise with the lender and solicitors through to completion. Thank you for making the process of buying my first home much easier.
Sam O'Neill, and the new lender he identified for me, worked tirelessly together using my time constraints, to make sure my mortgage application was completed on time. They are a brilliant company to work with, fast, efficient, open and transparent from the very beginning, and turned a seemingly impossible situation into a viable one. Sam was brilliant throughout the whole process and I would highly recommend him, and his colleague Helen, to anyone without hesitation, I cannot speak highly enough about them.
I was incredibly lucky to find Clifton Private Finance after a search on line as their service has been more than exemplary. My point of contact was Sam 0’Neill and he was happy to help at every stage during the application of the bridging loan, making a stressful process much easier to deal with. He was always available by phone or email and gave prompt answers to queries I had as well as always getting back to me when he said he would. That to me is excellent customer service and I cannot thank him personally or the company enough for the support they have given me.
Adam cannot thank you enough for all your support throughout this arrangement. You have gone more than the extra mile to support us. Without you we would not have got our dream retirement home. You have been most professional and personable. Liz and I would be more than happy if you wanted to use us a reference with respect to any future clients.
Nigel & Liz K - Bristol
You have certainly shown me that you do everything for your clients, including tolerating their excessive emails and questions for updates. I have been kept in the loop, from yourself, about why the delays were occurring (Nationwide, post etc) which I would like to highlight that I really appreciated. I certainly will be able to recommend you to others as and when the need arises.
I recently contacted Clifton Private Finance after a Google search for bridging finance providers and was immediately struck by their efficiency and support. Forms were emailed over almost immediately and the necessary finance was arranged within a few days. None of the other companies I contacted came close to their professionalism, and the quote that I eventually received was impressive. Thank you Adam, your help has enabled us to reserve the house that we wanted and I certainly recommend you to others.
Mr M. R. - Oxford
Absolutely brilliant. The service was first class, got everything sorted efficiently and were always friendly. Any fees were negligible compared to the service offered. Robert was particularly outstanding.
My advisor, Robert, was very helpful in finding the mortgage to suit me. He kept me up to date throughout the process and dealt with any issues when they arose.