AREA: Essex
AMOUNT RAISED: £5.2m
PRODUCT USED: Development Exit Finance
Property development rarely goes exactly to plan. When our client’s development finance term expired before their luxury apartment project could be fully marketed, they needed a quick solution to prevent their existing lender from taking action. With the project 95% complete and featuring high-end specifications, Bridging Finance London stepped in to arrange a development exit facility that gave them breathing space to achieve full market value.
Client Scenario
Our client, an experienced property developer, had built seven luxury apartments in a sought-after Essex town. They’d completed the bulk of the construction, but finishing touches and landscaping were still ongoing as their original development finance term came to an end.
The developer wanted to keep two apartments as long-term investments while selling the other five to pay off the finance. However, with the existing development loan expiring, they needed time to properly stage and market the properties to achieve their true value.
The apartments featured premium specifications including underfloor heating, smart home systems, and high-end kitchens. These unique features made them difficult to value accurately, especially as similar properties in the area were limited. This raised questions about how quickly they could sell for their true worth in the local market.
Adding to the complexity, the developer intended to keep two units as investments, requiring a solution that would work for both selling and holding properties.
Funding Solution
We immediately reached out to our network to find a suitable option. After researching the market, we identified a specialist lender with experience in the Essex property market who could appreciate the development’s premium quality and location.
Working against the clock, we arranged for the lender to visit the site within 48 hours. The quality of construction made a strong impression, helping us negotiate a 12-month development exit facility for £5.2 million.
We managed all parties throughout the process, keeping the existing lender updated while coordinating with valuers and the new lender. Given the time pressure, we focused on streamlining communications between all stakeholders, helping to compress what would typically be a 3-4 week process into just 8 days.
The lender agreed to release funds in two stages: an initial payment to settle the existing development loan, followed by a second payment once the final touches were completed, giving our client both immediate relief and additional working capital.
Final Outcome
Thanks to our quick action and relationship with specialist lenders, we secured the full £5.2 million facility with a competitive monthly interest rate.
The 12-month term provided our client with the breathing space needed to complete the high end finishes, properly stage the apartments, and implement a comprehensive marketing strategy aimed at the luxury market.
Within five months, the developer had sold three of the five apartments at prices exceeding their initial projections. The remaining two apartments listed for sale attracted significant interest, with one under offer by the sixth month.
The client retained the two investment units as planned and was able to refinance these onto a competitive buy-to-let mortgage before the bridging loan expired, with both immediately tenanted to professional renters.
What could have been a stressful end to an otherwise successful development became a smooth transition that ultimately enhanced the project’s profitability.
This case highlights the value of having finance experts on your side when development timelines don’t align with funding deadlines. By securing a 12-month development exit facility, we transformed what could have been a distressed sale situation into an opportunity for our client to maximise their return on investment.
The speed at which we completed the deal—just 8 days from initial enquiry to funds being released—showcases our ability to move quickly when our clients face time pressure. Our extensive lender network and expertise in presenting complex cases made all the difference in securing the right funding solution.
For developers approaching the end of their development finance term, a well-structured exit facility can provide the crucial time needed to achieve full market value rather than being forced into quick sales at reduced prices.
