Large bridging loan and development finance

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Tuesday April 11, 2017

Need a large bridging loan or development finance? We have the banking contacts to provide a tailored solution where other lenders may not be able to help. To discuss this or any other large or complex mortgage case, please contact us on 020 7519 4984 or email us.

Case Profile

The client wanted to purchase a commercial property through a bridging loan, and raise additional development funds to renovate it, planning to sell it afterwards. However, as a result of a relatively high LTV and the fact that the client required 100% of the development costs, finding a lender was a challenge.

Both clients live and work in London. In addition to their employment, they receive rental income from a number of properties in and around London.

They had found a commercial property which was currently being used as serviced offices. They wished to purchase the property in order to convert it into multiple residential apartments. Once the refurbishment was completed, the property would be sold. The proceeds of the sale would be used as both an exit to the bridging loan, and a repayment vehicle for the development finance.

They required 66% of the net purchase price of the property and an additional £200,000 in order to fund the development work. The gross development value of the property once the work had been completed was estimated to be £1.4 million.

In addition, it was vital that the bridging loan was in place within two weeks of the offer being made, in order for the transaction to be completed successfully.


Through our close contact with a range of lenders and finance providers we were able to arrange bespoke bridging and development finance for the clients.

Having taken the time to evaluate the clients’ circumstances fully, we were able to source a lender who was able to provide them with a bridging loan at 75% LTV, as well as 100% of the funding for the conversion works. The lender was happy for the proceeds of the sale of the flats to be used as an exit from the bridging loan and as a repayment vehicle for development finance.

By devoting the time to working closely with the lender, the surveyors, solicitors and the clients, we were able to arrange the finance in just 14 days; decisions could be made and acted upon quickly.

This allowed our clients to receive the funding in time to complete the transaction and begin renovating their new property.

Deal Highlights

Loan amount:£497,137.50 net and £562,500 gross
Rate:0.90% pcm
LTV:75% gross
Term:9 months
Type:Retained interest
Loan purpose:Bridging loan and development finance
Lender’s arrangement fee:2% of the loan amount
Early repayment charges:1 month's interest = £7,762.50


This case study is for information and illustration purposes only. It is not an offer, or suggestion of an offer. Each mortgage case is assessed on an individual basis and there is no guarantee that the solution described here can be repeated in the future.

Please note that this specific deal may not be available to – or suitable for – all customers, dependent on their individual circumstances. The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it. This document may not contain all the information needed for customers to make a decision and they should seek advice. is a trading name of Ltd. A fee of up to 1.17% of the mortgage amount is payable, of this 25% is payable on application and the remainder on completion, e.g. on a mortgage of £1,000,000 the fee would be £11,700 of which £2,925 would be payable on application. The precise amount will depend on your circumstances.

Your home or property may be repossessed if you do not keep up the repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you re-mortgage.

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Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Changes in the exchange rate may increase the sterling equivalent of your debt. You may have to pay an early repayment charge to your existing lender if you remortgage. Think carefully before securing any other debts against your home. is a trading name of Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London, E14 9QD authorised and regulated by the Financial Conduct Authority (FCA). Our FCA registration number is 302228 and can be viewed by visiting the FCA website: The FCA does not regulate tax advice or some aspects of commercial, buy to let, overseas mortgages, bridging finance, finance and asset lending. Ltd is a licensed credit broker, and not a lender. Ltd Registered in England and Wales No: 5070990 Registered Address: As above. The guidance and advice contained within the website are subject to the UK regulatory regime and is primarily targeted at UK customers. Calls may be recorded for training and monitoring.
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