A Guide to Bridging Loans for Property Development Projects
Planning a property development? Learn how development bridging works, staged drawdowns, monitoring, costs, contingencies and exits.
Development bridging that fits the build
This guide focuses purely on development uses of bridging. It covers how to structure finance around your works, why staged drawdowns matter, and the exits that lenders want to see.
What development bridges fund
- Acquisition plus works for dated houses and flats that need a proper refurb
- Conversions such as office to residential or large homes to multiple flats
- Ground-up schemes where value is created during the build
If your project is in Brighton and Hove or nearby, local pointers and exits are covered in our Guide to Bridging Loans for Property Development Projects in and Around Brighton and Hove.
Staged drawdowns and monitoring
Heavier projects are funded against a schedule of works with agreed milestones. After each stage, the lender’s surveyor confirms progress and releases the next tranche. It keeps cash flowing without overexposing the lender or the borrower.
Cost plan and contingency
Budget for:
- Arrangement fee, monthly interest and any exit fee
- Initial valuation and monitoring inspections
- Professional fees and insurance
- 10 to 15 percent contingency on build and time
For refinance timing after works, read Remortgaging in Brighton and Hove to Clear Debts or Fund Home Improvements.
Exit routes that work
- Sale on completion of the refurb or development
- Refinance to buy-to-let for income and long-term hold. New to letting? See Buy-to-Let in Hove for First-Time Landlords
- Holiday let refinance if the unit suits short-term stays: Holiday Let and Airbnb Mortgages around Hove and Shoreham-by-Sea
Documents to prepare
- Schedule of works, costings and timeline
- Planning consents and building regs approach where relevant
- Contractor details and insurance
- Exit summary with evidence for sale or refinance
If you would like us to review your works schedule and exit plan before you commit, use the contact page.