The Situation


Development bridging loan top-up to support the development of a £14.7m residential development with security from assets unrelated to the development.

A seasoned housing developer with a wealth of experience, our client took absolute pride in the homes they built, ensuring room sizes were generous, storage was plentiful and the luxury designs were accompanied by high-quality furnishings.

Careful thought and analysis goes into every location they invest in. They carry out rigorous research on the supply, demand, and future potential of every location under consideration, identifying the best hot spots and opportunities for future developments.

At the time of contact, the client had multiple developments in progress. All were on track to meet forecasts, that was until there was a significant delay in receiving planning permission for one of the projects, bringing the entire development to a standstill. As a result, unplanned expenses occurred impacting the short-term cash flow for the developments, creating a working capital gap that needed to be funded quickly with a development bridging loan.


Where We Came In

Under pressure to keep the development’s cash flow going, the client contacted us through an independent broker to see if we could offer a quick solution to their property finance needs.

The client had found that other funders were shying away due to the development being fully leveraged and the uncertainties about when planning would be received.

Despite the development being fully leveraged, we looked outside of the box. Discovering that alongside the development project, the client had a portfolio of additional assets with no connection to the developing entity.

Working with the client, we were able to support them with £1.3m of funding by taking second charges over multiple buy-to-let properties instead of the actual development itself. By lending directly to the SPV that the development site was owned by, through security on unrelated properties, we provided the developer with the development bridging loan needed to finally complete the development after the planning process caused several months of delays.


Term: 3 Months

Timing: Completed in two weeks

Security: 2nd charge over various BTL properties | A personal guarantee.

The Result

As envisaged, with the strong demand for properties in the area, the developer pre-sold every unit. However, the development wasn’t finished within the anticipated timeframe, although, as ever, we worked with the client and provided a comfortable extension to the funding, allowing enough time to finalise the planning and finish the development.