Bridging & Development Loans in Southwark

Short-term property finance for Southwark, Petts Wood, St Mary Cray and BR5 / BR6.

When you need funds quickly – to secure an auction lot, complete a purchase before selling, or refurbish a property – standard mortgages are often too slow or restrictive. That’s where bridging finance and development loans come in.

We support investors, landlords and developers in Southwark, Petts Wood, Chelsfield, St Mary Cray and Locksbottom to understand their options and, where advice is required, introduce you to FCA-authorised and specialist lenders/brokers who deal with short-term and development funding every day.

What Is a Bridging Loan?

A bridging loan is a short-term facility typically used to:

• Bridge a purchase before sale – buy your next property before your current one completes.
• Fund auction purchases – complete within tight deadlines (often 28 days).
• Finance refurbishments – where a standard mortgage won’t lend until works are done.
• Release capital quickly – pending a sale, refinance or other exit.

Most bridging loans run from 3–18 months and are repaid from a clear “exit” – usually sale or refinance onto a longer-term mortgage.

What Is a Development Loan?

Development finance is designed for ground-up builds, conversions and heavier refurbishments, for example:

• New-build houses or flats around Southwark and the BR5 / BR6 area.
• Office-to-residential or commercial-to-residential conversions.
• Heavy refurbishments that significantly change layout or structure.

Facilities can cover both site acquisition and build costs, often released in stages as the project progresses.

Typical Uses Around Southwark

• Buying a property at auction in need of work, then refinancing onto a buy-to-let or residential mortgage.
• Refurbishing tired stock in Petts Wood or St Mary Cray to increase value and rental income.
• Small-scale developments or conversions into multiple units.

Key Lender Considerations

1. The Exit Strategy

• Sale of the finished property or units.
• Refinance onto a buy-to-let, residential or commercial mortgage.
• Timing, market assumptions and contingencies.

2. Experience & Track Record

• Previous projects completed.
• Professional team in place (builder, architect, planning consultant, etc.).
• Realistic costings and schedule.

3. Numbers & Security

• Loan-to-value / loan-to-cost (LTV / LTC).
• Gross development value (GDV) at the end of the project.
• Additional security or guarantees if required.

Bridging & Development Finance – Our Process

1. Initial discussion: We talk through the property, project, timeline and required funds.
2. Information pack: Purchase price, works schedule, build costs and projected end value are collated.
3. Introduction: We introduce you to specialist short-term and development finance brokers/lenders.
4. Terms & underwriting: They approach suitable lenders, obtain terms and manage valuation and legals.
5. Completion & drawdowns: Funds are released for purchase and, for development, in stages as works progress.

Important Risks & Considerations

• Short-term & higher cost: Rates and fees are typically higher than standard mortgages.
• Exit risk: If sale or refinance is delayed, extra costs or extensions may be needed.
• Works & build risk: Cost overruns and delays can affect profitability and lender appetite.
• Security: Loans are usually secured on property, with potential personal guarantees.

Our Role & FCA Disclaimer

We are not authorised to provide regulated mortgage advice. Bridging and development loans may be regulated or unregulated depending on the scenario. Our role is to:

• Discuss your project and funding needs in plain English.
• Introduce you to FCA-authorised and specialist brokers/lenders where regulated advice or structuring is required.
• Help you think about the exit onto standard buy-to-let, residential or commercial products.

Useful Links

Buy-to-Let Mortgages · HMO Financing · Commercial Mortgages · Remortgages · Contact Us

Bridging & Development FAQs — Southwark

How fast can a bridging loan complete?

In straightforward cases, it may be possible to complete in a matter of weeks, subject to valuation, legals and the lender’s processes.

Do I need previous development experience?

For lighter refurbishments, some lenders will consider first-time developers. For ground-up or complex schemes, experience is usually essential.

Can I use a bridge if a property is not mortgageable?

Yes – that is a common use. Bridging lenders will often fund properties requiring work that standard lenders will not initially accept.

Discuss Bridging & Development Finance in Southwark

If you’re planning a purchase, refurb or development in Southwark, Petts Wood or BR5/BR6, get in touch to explore your funding options.