Development Exit Bridge

Published by Silver Oak Capital -


Lending Query

We were approached by a developer who was in the final stages of completing the construction of a luxury residential development in North West London. It consisted of 25 apartments. The developer had done little marketing given the state of the luxury residential market at the time – but had at least secured presales in the form of 4 exchanged units. The lender required a bridging loan to refinance the outstanding development and Mezz facilities in order to allow more time to market and sell the remaining units. A bridging loan of £19million GBP was required.

Client Circumstances

The developer had run over on their build schedule and hence required a refinance whilst the scheme was only partly complete (80%). This was also the first luxury/high-end scheme the developer had attempted – and by far the largest.

Problems To Solve

The major challenge on this deal was finding a lender who could get comfortable with lending on a partially completed residential development. We had to present a clear and concise exit and marketing plan to the lender whilst ensuring a strong valuation report would give them additional comfort.

Solution Provided

Through our in-depth knowledge of the UK bridging market, we were able to put together the following solution for our clients.

Bridging Loan of £19 million GBP (Gross)

Rate 0.75% per month

Term 12 Months

Max 73% LTV

15% Personal Guarantee

Jimmy Baillie

Real Estate Finance professionals, specialist broker, large loans of £2m – £20m. Development-Bridging-Residential-Commercial-Marine-Aviation.

Link to Silver Oak Capital business profile

15th July 2024
The Business Killer: Are Extended Transaction Cycles Here to Stay?
Why are property transactions taking so long to complete?  
Read more
10th June 2024
Golding and Octopus Real Estate Complete Transfer of 180 Affordable Homes
Golding and Octopus Real Estate complete transfer of 180 affordable homes outside Mid Kent
Read more
26th May 2024
Can You Get a Bridging Loan With Bad Credit?
We’ve been looking at bridging loans a lot recently because they’ve become such a key financial tool for savvy property investors.  But can you get a bridging loan with bad credit?
Read more