You’ve taken out a bridging loan, but things haven’t gone quite to plan.
Maybe your property sale is taking longer than expected, or those renovation works have hit a snag.
Now you’re wondering if you can extend your loan period – and what that might mean for your finances.
The good news? Yes, you can often extend a bridging loan. While these loans are designed as short-term solutions, most lenders understand that sometimes circumstances change. Whether it’s planning permission delays, a broken property chain, or market conditions affecting your sale, there are usually options available.
But extending isn’t as simple as just asking for more time.
Let’s look at everything you need to know about extending your bridging loan, including what lenders look for, how the process works, and what alternatives might suit you better.
Understanding Bridging Loan Extensions
When you get a bridging loan, you’ll have agreed on a set date to repay the full amount.
Extending means pushing back this repayment date – but it’s more than just moving a deadline. It’s a formal change to your loan terms that needs approval from your lender.
Most bridging loans run for 3-18 months.
An extension might add another 1-6 months to this timeline, though each lender sets their own rules. You’ll sign new paperwork and might face different costs or conditions for the extended period.
Right now, the UK property market has slowed in many areas, which makes extensions more common. Homes are taking longer to sell – in some regions, up to 50% longer than last year. This affects both property developers waiting to sell completed projects and homeowners stuck in broken chains.
Extensions work differently from refinancing.
With an extension, you’re keeping your existing loan (and lender) but changing the end date. Refinancing means setting up a completely new loan, with a different lender. While refinancing might offer better rates, it takes a bit longer to arrange and usually costs more in fees.
Let’s say you’re converting a commercial property into flats in South London.
Your original 12-month loan seemed plenty, but getting planning permission for a slight change took three extra months. An extension keeps your current loan running while you finish the work and find buyers, saving you the hassle and expense of switching to a new loan.
But remember – extensions aren’t automatic.
Your lender will want to know why you need more time and how you’ll use it. They’ll look at how well you’ve managed the loan so far, including keeping up with any interest payments. Being upfront about delays and staying in touch with your lender makes getting an extension much smoother.
When Can You Extend a Bridging Loan?
Lenders look at each extension request based on its own merits, and there’s no guarantee they’ll say yes.
If you’ve kept up with the loan agreement and have a clear plan, they’re more likely to give you extra time. You’ll need to show them exactly why you need an extension and how you’ll use the additional period.
Your lender will assess several factors before approving more time.
They’ll review your payment history, check how much equity remains in the property, and evaluate your new exit strategy. They might ask for an updated property valuation, especially if market conditions have changed since your loan began.
Getting your timing right matters. Don’t wait until the last minute – contact your lender as soon as you realise you might need more time.
Most want at least a month’s notice, though earlier is better. You’ll need to allow enough time for the checks to be completed and the new agreement drawn up.
Valid Reasons for Extension
Take a property developer in Leeds who’s converting an old Victorian house into apartments.
The discovery of asbestos during renovation led to unexpected delays. This kind of unforeseen issue, with clear documentation and a solid plan to resolve it, often presents a good case for extension.
Planning permission holdups rank among the most common reasons for extensions.
For instance, if you’re adding a two-story extension in a conservation area and the planning process takes longer than expected, lenders understand this is beyond your control.
Property chains breaking can throw even the best-laid plans off course.
Say you’re selling a house in Bristol, and your buyer’s sale falls through two weeks before completion. Rather than rushing to find a new buyer at a discounted price, an extension gives you time to find the right buyer at the right price.
Let’s talk bridging loans!
The Extension Process
Asking for more time on your bridging loan isn’t complex, but you’ll need to follow the right steps.
Start by reaching out to your lender or broker to discuss your situation. A quick phone call can often tell you whether an extension might work for you.
You’ll need to put your request in writing, explaining why you need more time and how you plan to repay the loan.
Back this up with evidence – recent bank statements, an updated project timeline, or details of your property marketing if you’re selling.
Most lenders will ask to see:
- Your latest bank statements
- Current property marketing details
- Evidence of any ongoing works
- Updates on planning applications
- New exit strategy details
The review process usually takes about 1-2 weeks, though this will vary between lenders. Some might want to reassess your property’s value, while others focus more on your exit strategy and payment history.
Costs and Considerations
Let’s talk money.
Extension costs vary between lenders, but you’ll pay another arrangement fee – often around 1-2% of your loan amount. Legal fees come into play too, as you’ll need updated loan documents.
Interest rates might change for your extension period.
If property values have dropped or your project faces significant delays, you might see a small increase. On the flip side, if everything else is going well and you just need a short extension, many lenders keep your original rate.
Be prepared for extra costs like:
- New valuation fees if required
- Legal fees for updated documents
- Administration charges
- Possible increased interest rates
Think carefully about timing. If you need three extra months, consider asking for four – it’s better to have a buffer and repay early than need another extension. Most lenders don’t charge early repayment fees on bridging loans, so you won’t be penalised for paying off ahead of schedule.
Alternative Options
Rather than extending your existing bridging loan, you might find other options work better for your situation. Let’s look at some alternatives that could help you avoid needing more time.
Refinancing with a new bridging lender, also known as rebridging, could give you a fresh start. While you’ll pay new arrangement fees, you might secure better rates, especially if your project has progressed well.
For example, if you’ve completed most of your property renovations, the reduced risk could mean more favourable terms with a new lender.
For larger projects a development exit loan offers another path, particularly if your build is nearly complete. These loans often have lower interest rates and can give you 12 months to sell your property at the right price, rather than rushing to meet your bridging deadline.
If you’re close to selling but just need a few more weeks, some specialist lenders offer very short-term lending designed specifically for these situations. These can work out cheaper than extending your current loan, though they’re usually only available for 1-3 months.
For larger loans over £1 million, private banks might step in with bespoke solutions. They can often structure deals that match your exact circumstances, whether that’s a new bridging loan or a different type of finance altogether.
If you’ve got enough equity in other properties, a second charge loan (or another bridge) could provide the funds to repay your bridge without extending it. While this means new monthly payments, it could give you more control over your timeline and potentially reduce your overall costs.
A Blended Solution
As with many situations, there may not be one clear or simple solution.
Often it’s two or three, all working together.
Your finance broker can arrange these, coordinating everything so the original loan gets repaid on time.
How a Broker Can Help
Working with a broker can make all the difference when you need to make substantial changes to your bridging loan. They’ll know which lenders are more open to extensions and what each one looks for in applications.
This saves you time and improves your chances of success.
Good brokers maintain relationships with many lenders across the UK market, including specialist bridging providers, private banks, and individuals who lend their own funds.
(We work with over 250 lenders)
Each has different rules about extensions – some are more flexible with property developers, others prefer residential cases.
Your broker will handle negotiations on your behalf. They’ll present your case in the best light, explaining any delays and showing how you’ll get back on track. If your current lender won’t extend, they can look for refinancing options with other providers.
Plus, brokers often know about upcoming changes in lending policies or new options in the market. This insight helps you make better decisions about whether to extend or look at alternatives.
Prevention Better Than Cure
Good planning from the start reduces the chance you’ll need a bridging loan extension.
Set realistic timelines for your project, then add extra time for unexpected setbacks. If you’re selling a property, look at local market conditions – homes in some UK areas take twice as long to sell compared to last year.
Keep track of your progress with monthly reviews.
Check your timeline against actual progress, whether that’s building works, property sales, or mortgage applications. Watch for early signs of delay, like slower than expected viewings or contractors falling behind schedule.
Stay in touch with your lender or broker even when things are going well.
A quick monthly update builds trust and makes them more likely to help if you hit problems later. If you spot potential delays, tell them straight away – they might suggest solutions before you need an extension.
Keep an eye on external factors too. Changes in the UK property market, new building regulations, or shifts in mortgage lending criteria can all affect your exit plans. The more aware you are, the better you can adapt.
In summary
Extending a bridging loan is often possible with the right approach.
Whether you’re dealing with project delays, slower property sales, or other hold-ups, options exist to give you more time. The key is acting early and having a clear plan.
Remember, every case is different. What works for a property developer in Manchester might not suit a landlord in London. Get expert advice tailored to your circumstances rather than trying to handle things alone.
Need help with a bridging loan extension?
Get in touch to discuss your situation. Our team helps property investors, developers, and homeowners find the right solutions for their bridging finance needs.
FAQ
This will depend on the lender, and your situation.
Most lenders offer extensions of 3-6 months. Longer periods are possible but might require refinancing rather than a simple extension. Each case is assessed individually based on your circumstances and exit strategy.
You’ll usually have to pay another arrangement fee, legal fees for new documentation, and possibly a new valuation fee. Interest rates might change for the extension period.
It depends on market conditions and how long you’ve had the loan. If property values have changed significantly or it’s been over six months since your last valuation, most lenders will want an updated valuation.
Missing payments makes extensions harder to secure but not impossible. You’ll need to explain any missed payments and show how you’ll stay on track during the extension period. Working with a broker can help present your case effectively.
If your current lender declines, you have options. These include refinancing with another lender, seeking a different type of finance, or selling the property. A broker can help you explore all available alternatives.
Contact your broker as soon as you think you might need more time – ideally at least one month before your loan ends. Earlier contact gives you more options and shows responsible management of your loan.
This depends on several factors including costs, timing, and your exit strategy. If you need just a few extra months, an extension often works best. For longer periods, refinancing might offer better terms, and could give you the option to borrow a bit more.
Yes, commercial property bridging loans can be extended.