Bridge Loan
- Location: England, Wales and Scotland
- Tenure: Freehold or Leasehold, with a minimum of 65 years
- Security: 1st Legal Charge over the underlying asset, share charge, debenture and Personal Guarantees (as applicable)
- LTV: Up to 75% (Gross)
- Interest payment: Serviced or rolled up
- Amount: £5 million to £100 million
- Term: 6 – 24 months
- National and Regional Developers
- UHNW & HNW Individuals
- Public Listed Companies
- Private Limited Companies
- Overseas SPV
- Inventory loans (residential units for sale)
- Land for Residential Dwellings (Houses/Apartments)
- Land with planning permission for residential development
- Student Accommodation
- Location: England, Wales and Scotland
- Tenure: Freehold or Leasehold, with a minimum of 60 years
- Security: 1st Legal Charge over the underlying asset, share charge, debenture and Personal Guarantees (as applicable)
- LTV: Up to 65% (Gross)
- Interest payment: Serviced or rolled up
- Amount: £5 million to £100 million
- Term: 12 – 24 months
- National and Regional Developers
- Developers
- UHNW & HNW Individuals
- Public Listed Companies
- Private Limited Companies
- Overseas SPV
- Office Inventory Loans - Prime central London only, with service guarantee
- Offices and serviced offices with leases
- Offices for converstion to BTR, or PBSA
- Hotels and serviced apartments
- Land with planning permission for commercial development
Bridging Loan FAQs
Can you get Bridging Loans for House Purchase?
Bridging loans are generally used to part-finance the purchase of a property.
Typically, they ‘bridge’ the gap between the acquisition and obtaining longer-term finance, for example, if an individual or company were to purchase a house or apartment as a buy-to-let investment, but needed time to refurbish the property, obtain any necessary landlord licences, and find a tenant prior to taking out a traditional buy-to-let investment loan.
London Wall Lending offers bridging loans and development loans to new and existing clients. We have expertise in lending against residential properties and commercial properties. Our loans are classified as unregulated and therefore the property being offered as security must not be your place of residence.
What is a Commercial Bridge Loan?
A commercial bridge loan is a short-term loan facility that is provided to a property investment or development company. It is secured by a charge over a commercial property such as an office, a retail shop, or an industrial building.
Commercial bridge loans are typically used to part-finance the acquisition of a property and to ‘bridge’ the gap between the purchase and obtaining long term facilities for the ultimate purpose. For example, an investor might use a commercial bridge facility to acquire an office building with the intention of refurbishing the property and securing new tenants. Once the investor has carried out the strategy, they will then look at long term financing options such as a commercial investment loan, which are not typically available unless the property is income producing.
London Wall offers bridging loans and development loans to new and existing clients. We have expertise in lending against residential properties and commercial properties. Our loans are classified as unregulated and therefore the property being offered as security must not be your place of residence.
How much can I borrow with a Bridging Loan?
London Wall offers bridging loans from £500,000 up to £30,000,000.
The loan amount offered will vary from transaction to transaction and is dependent on the type of property, location, and your experience as a developer / investor.
London Wall offers a maximum of up to 70% LTV (loan-to-value) when calculated using the gross loan (being the initial loan provided plus any accrued fees and/or interest). The actual LTV offered may be lower than 70% based on our analysis of the above factors.
London Wall offers bridging loans and development loans to new and existing clients. We have expertise in lending against residential properties and commercial properties. Our loans are classified as unregulated and therefore the property being offered as security must not be your place of residence.
How much would a Bridging Loan cost?
The cost of a bridging loan is made up of fees and interest costs, both of which are bespoke to each bridging loan provided by London Wall.
Following our initial analysis, we will usually be able to offer indicative terms for each transaction. Once the terms are agreed and the transaction is approved by our Credit Team, the interest and fees will be fixed for the agreed duration of the facility.
London Wall offers bridging loans and development loans to new and existing clients. We have expertise in lending against residential properties and commercial properties. Our loans are classified as unregulated and therefore the property being offered as security must not be your place of residence.
How long can I get a Bridging Loan for?
Residential bridging loans and commercial bridging loans are both intended to be short term finance options. They are designed to ‘bridge’ the gap between two events where traditional development finance or investment finance options are not available.
Examples of where a bridge loan might be used are:
Acquisition of a residential property or commercial property, for which the purchaser intends to carry out light refurbishment works and secure a tenant prior to refinancing on to traditional investment loan.
Acquisition of an existing property or a development site, for which the purchaser intends to work up, or revise existing, planning consent for a development. A period is often required to modify planning and appoint construction professionals prior to commencing a development, at which point the original bridge loan would be refinanced on to a traditional development loan.
A development exit bridge (also referred to as a sales bridge) can be used to repay outstanding development loans upon practical completion of a development, where the developer requires more time to either sell the flats / apartments / houses or to secure tenants if they intend to hold the property as a long-term investment.
London Wall offers bridging loans and development loans to new and existing clients. We have expertise in lending against residential properties and commercial properties. Our loans are classified as unregulated and therefore the property being offered as security must not be your place of residence.
