Introduction:
Bridging loans have become a valuable financial tool in the world of property development, offering flexibility and speed that traditional financing options often lack. In this article, we will explore real-world success stories from BIG Property Finance, highlighting how bridging loans have been effectively utilised in property development projects. From staged drawdowns to refurbishments and beyond, these examples showcase the versatility and benefits of bridging finance.
1. Unlocking Equity for Development Opportunities
Gross Loan: £263,250 Term: 12 Months
180-Day Value: £405,000 Rate: 1.05% PCM
To keep momentum going on an exciting development project in Warwickshire, our client sought a bridging loan to help fund the ongoing construction of two new residential homes. As security, they offered a charming two-bedroom, semi-detached cottage in Cheltenham—an 1850s stone-built gem with a classic slate roof. Purchased in 2016 for £380,000, the property is currently tenanted and generating a healthy annual rental income of £24,000. Perfectly positioned on the main high street, directly opposite the local village pub, this character-filled cottage offered strong appeal as collateral. We acted quickly to deliver the bridging finance needed, ensuring cashflow was maintained and progress on the Warwickshire site stayed on track, with a view to a successful sale of the new homes in the near future.
2. Expanding property portfolios
Gross Loan: £427,000.00 Term: 12 Months
180-Day Value: £610,000 Rate: 1.00% PCM
A bridging loan was arranged to refinance an existing lender and release additional funds for a new investment opportunity. The security: a well-maintained, traditionally built semi-detached home, located in a well-established residential area. This two-storey property has been thoughtfully extended—featuring a double-storey side addition, a rear single-storey extension, and upgraded with external wall insulation for added efficiency. An extended first-floor bedroom even reaches into the attic space, though it’s currently not in use as living accommodation.
We delivered a serviced bridging loan at 70% LTV, supporting a trusted, long-standing client with a proven track record. The funds ensured flexibility and speed, allowing them to seize their next investment with confidence.
3. Experienced Landlord
Gross Loan: £440,000.00 Term: 12 Months
180-Day Value: £685,000 Rate: 1.20% PCM
We arranged a bridging loan to support the purchase of a promising investment property in Coventry. The borrower plans to use their own funds to carry out a cosmetic renovation, aiming to bring the property up to a modern rental standard.
The property itself is a spacious, three-storey, four-bedroom detached house, located just outside Coventry city centre. With a single garage and a generous rear garden, it holds strong appeal for future tenants. While currently in dated condition, the planned improvements, including new windows and full redecoration, are budgeted at a modest £7,500.
Thanks to the borrower’s solid track record and consistent rental income from their existing portfolio, we were able to agree a serviced bridging facility. Once the refurbishment is complete, the property will be refinanced with a term loan, allowing the borrower to retain it as a long-term investment.
4. Bridging Finance with staged drawdowns
Gross Loan: £1,590,000 Term: 18 Months
180-Day Value: £3,600,000 Rate: 1.15% PCM
We structured a dynamic bridging loan with staged drawdowns, ensuring immediate financial support and long-term flexibility. From day one, we provided £630,000 to swiftly settle an existing loan, while the remaining £400,000 was earmarked for the demolition and construction of a brand-new 1,400 sq. ft. residential property.
To further fuel the project’s momentum, we approved an additional £270,000 draw facility—enabling crucial demolition work, covering architectural expenses, and funding planning costs for the wider site. This strategic funding approach ensured a smooth transition from planning to execution, keeping the development on track for success.
The property briefly comprised of approximately 50 stables, 43 acres of pastureland, a range of stabling accommodation and a redundant residential cottage.
Demolition plans include replacement of the stable cottage. The cottage is currently derelict and uninhabitable. Permission was granted in Feb 2024 for a replacement dwelling. It is the borrower’s intention to develop the barn and they have started clearance works and immediate structural works.
No formal permission has yet been applied for however we do know that they intend to develop a further eight townhouse style residential properties.
The land had recently been included in a developer’s plan to redevelop the area. They have highlighted the pastureland on the holding to have potential for residential development. The loan exit is to sell the cottage once it has been built and sale of the land, when planning has been firmed up.
Conclusion
These real-world success stories highlight the vital role of bridging loans in property development. From facilitating quick acquisitions to funding renovation projects and unlocking equity for new opportunities, bridging finance offers developers the flexibility and agility needed to succeed in today’s dynamic property market.
At BIG Property Finance we are happy to receive enquiries through telephone, email or enquiry form on our website. We aim to provide indicative loan terms within hours and a potential loan offer in a matter of days. We look forward to hearing from you soon. Contact us today on 121 348 7830 or at info@bigpropertyfinance.co.uk
