Bridging & Development Finance
NexGen Finance helps UK property investors and developers explore bridging loan and development finance options through trusted commercial finance partners. Whether you need short-term finance for a property acquisition, a refurbishment project or a ground-up development, we can help review your enquiry and discuss suitable routes.
Bridging Loans & Development Finance
Bridging finance and development finance are short-term property funding solutions used when speed, flexibility or staged drawdown is required. Both are considered specialist finance and are assessed differently from standard buy-to-let or commercial mortgage products.
Bridging Loans
A bridging loan is a short-term property finance facility — typically 1 to 24 months — secured against residential or commercial property. Bridging loans are commonly used where speed or flexibility is needed and longer-term finance is not immediately available or appropriate.
Common uses:
- Auction purchases requiring fast completion
- Chain breaks and time-sensitive property transactions
- Light and heavy property refurbishment
- Short-term finance pending longer-term refinancing
- Development exit finance
- Purchasing unmortgageable property at below market value
Development Finance
Development finance is used to fund property development projects — typically ground-up construction, heavy refurbishment or conversion schemes. Funding is usually released in staged drawdowns tied to build progress, with interest rolled up or serviced during the build period.
Common uses:
- Ground-up residential and commercial development
- Site acquisition with planning consent
- Conversion of commercial buildings to residential
- Heavy refurbishment and structural conversion
- Pre-planning and land acquisition funding
- Development exit and term refinancing
Bridging Loan — Key Lender Considerations
- ✓ Security property value and type
- ✓ Loan-to-value — typically up to 65–75% of open market value
- ✓ Clear and credible exit strategy
- ✓ Borrower experience and background
- ✓ Term required — typically 6 to 18 months
- ✓ Planning status and permitted development rights
How Bridging and Development Finance Is Assessed
Bridging loans and development finance are assessed differently from standard mortgage products. Lenders focus heavily on the security, the exit strategy and the credibility of the borrower and project.
For development finance, the key metrics include the gross development value (GDV), the loan-to-cost (LTC) ratio, the developer's track record and the quality of the build programme. NexGen Finance can help review enquiries and connect suitable cases with broker partners experienced in this type of lending.
Discuss Your EnquiryDevelopment Finance — Key Considerations
Gross Development Value
The projected end value of the completed development. Lenders typically lend up to 65–70% of GDV.
Loan to Cost
The total loan amount as a percentage of total project costs. Typically up to 80–90% of costs for experienced developers.
Developer Experience
Lenders typically prefer borrowers with a track record in similar development projects. First-time developers may face more limited options.
Exit Strategy
A clear exit — typically sale of completed units or refinance onto a long-term facility — is essential for lender approval.
Bridging & Development Finance — Frequently Asked Questions
How quickly can bridging finance be arranged?
Bridging finance can often be arranged more quickly than standard mortgage products. Completion timescales vary depending on the lender, the complexity of the transaction and how quickly legal and valuation work is completed. NexGen Finance does not guarantee any particular timescale, and all finance is subject to full underwriting and legal requirements.
What is the minimum and maximum term for a bridging loan?
Most bridging loan products are available for terms of 1 to 24 months. The appropriate term will depend on the nature of the project or transaction and the planned exit strategy. Some lenders offer terms outside these ranges for specific scenarios. All lending is subject to lender criteria and approval.
Can development finance be used for conversion projects?
Yes. Development finance is commonly used for the conversion of commercial buildings to residential use (including permitted development rights conversions), as well as other conversion schemes such as barn conversions, church conversions and large house conversions into flats. The criteria will vary depending on the project type, the developer's experience and the lender.
Is bridging finance available for auction purchases?
Yes. Bridging finance is commonly used for auction purchases where the standard 28-day completion requirement makes traditional mortgage finance impractical. The speed of bridging finance makes it well suited to auction transactions, subject to lender criteria and the property meeting the lender's security requirements. All finance is subject to status and lender approval.
What is development exit finance?
Development exit finance is used to repay a development loan once a project is substantially complete but before all units are sold. It is typically used where the developer needs to extend their borrowing period to allow time for sales to complete, or where the initial development loan term is coming to an end. Terms and availability vary by lender.
Important information: NexGen Finance is not a lender and does not provide regulated financial advice. Suitable enquiries may be referred to commercial finance broker partners. Funding is subject to status, affordability, lender criteria and approval.
A Practical, Compliance-Led Approach
NexGen Finance keeps commercial and property finance enquiries straightforward. We focus on clear communication, practical funding routes and transparent wording, without overpromising outcomes.
Discuss Your Bridging or Development Finance Enquiry
Call or email NexGen Finance to discuss your short-term property finance requirements. We will review your enquiry and help explore suitable funding routes through trusted broker partners.