Case study: Bridging transition to safeguard development after construction delays

Client: Property developer 

Request: Transition from an existing development facility to bridging finance to ensure completion is achieved on all of the units, following construction delays as a result of bad weather.

Location: Buckinghamshire

Loan total: £1,267,300

LTV: 75%

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Following delays due to bad weather over the winter, a property developer needed to transition onto a bridge while they used their own funds to achieve practical completion. 

Initially the plan was for development exit finance but instead they made use of a standard bridge to draw a greater day 1 figure to aid with the project’s overall cashflow. 

The units themselves were only two weeks behind schedule, with some minor redecoration and additions necessary. 

Three of the four units built by the developer needed to be sold to repay the facility but the valuer was confident they could be sold within 9 months, given the works would be completed so soon after the bridging loan. 

We were happy to support the deal, giving the developer the time they needed to finish their project and sell the units. 

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If you want to start your next Development or Bridging deal, visit our product pages to get started. 

This week we have been spending time introducing you to our regional BDMs, so you can learn more about the opportunities in their area and connect with them. 

This week we’re talking to Abigail Challen, our BDM for London and The Home Counties. If you want to discuss a deal with her email: [email protected], or you can connect with her on LinkedIn or call her on +44 (0)7826 199 499.