Case Study: £24m Development Bridge – London Residential Project
How we structured a complex acquisition & pre-construction loan in South East London
📘 Contents
• The client and their project
• Funding requirement
• Key challenges
• Loan structure and terms
• How we solved it
• The result
• Takeaways for other developers
1 | The Client and Their Project
Our client, a well-established residential developer with a track record across London and the South East, was under contract to acquire a 1.8-acre site in South East London with existing planning consent for 72 units — a mix of flats and townhouses.
They had already secured part funding from equity partners and were in negotiation with a senior lender. However, delays in credit sign-off from the development lender meant the acquisition was at risk of falling through.
🏗️ Project summary
72-unit residential scheme
GDV: £42m
Site acquisition value: £27.5m
Required bridging loan: £24m
Use of funds: Complete land purchase + cover early enabling works
2 | Funding Requirement
The client needed a bridging facility of £24 million, secured against the site (with full planning), to:
• Complete the land purchase within 12 working days
• Cover Section 106 obligations and utility payments
• Begin enabling works (site access, demolition, services)
They intended to exit into a senior development loan after works started.
3 | Key Challenges
Challenge — Details
Time pressure — Completion deadline was 12 working days away
Planning complexity — Planning permission included phasing conditions and affordable housing provision
Valuation — The valuation had to reflect both the as-is value and future GDV potential
Security — Lender required second legal charge on another portfolio asset to boost leverage
Exit clarity — No formal development funding agreed at the time of application
4 | Loan Structure and Terms
Term — Structure
Facility size — £24,000,000 (gross)
Security — 1st charge on the subject site + 2nd charge on a BTL block in West London
LTV — 66.2% day-one (vs £36.25m value incl. planning gain)
Term — 12 months, with 6-month extension option
Interest — 0.74% per month, retained for 9 months
Arrangement fee — 1.25%
Exit — Senior development facility (indicative HOTs included)
Valuation — Full Red Book valuation completed by Tier-1 panel firm within 5 days
5 | How We Solved It
To meet the time pressure and credit concerns, we:
• Pre-packaged the deal with a full funding memo, valuation assumptions, and exit model
• Engaged a lender with deep experience in land + planning-based bridging
• Instructed dual solicitors for speed, with indemnity policies prepared in advance
• Leveraged the client’s unencumbered West London asset to provide additional comfort
• Obtained a site inspection valuation within 72 hours of application
• Issued formal terms in under 48 hours
• Liaised directly with the seller’s lawyers to ensure simultaneous exchange and drawdown
6 | The Result
The site completed on day 11 (1 day ahead of deadline)
Enabling works started within 3 weeks
The client went on to secure a £32m development facility 4 months later
Gross profit forecast remained intact due to fast execution
The lender relationship has since extended to 2 other sites
7 | Takeaways for Other Developers
Speed is possible with the right prep: valuation, legal, and exit plan are everything
Bridging doesn’t stop at purchase — it can cover early site work, planning discharge, and negotiation costs
Cross-security can help stretch leverage without diluting equity
Transparent experience + fallback plans give lenders confidence at high LTVs
The difference between a missed opportunity and a completed deal is often structure and urgency
📞 Need development bridging of £2m–£25m?
We structure deals fast — with market-leading access to private and institutional lenders.
