Our short term bridging loans are for purchase, refinance, property improvement or to unlock working capital for business purposes.
This unique overdraft provides you with a flexible drawdown facility giving you instant liquidity and avoids heavy setting-up costs.
Individually structured loans for residential and commercial projects, with finance available for site purchase, construction and fees, refinance, equity release and to provide working capital. Loans are available up to 90% of the site cost.
Flexible first and second charge non-regulated loans available on terms from 3 to 5 years.
We have a commitment to innovation and with the ever changing financial landscape around us we have designed a range of unique Specialist Lending products that solve a range of property finance needs.
Property development finance that's tailor-made
Is a development finance bridge the right finance solution for you? Find out the answer to this question and everything you need to know about development finance loans for property development here with Alternative Bridging Corporation below. Our aim is to help you find what you need swiftly and simply. If there are any further questions you need answers to simply call us and ask to speak to one of our property development finance professionals. For a more in-depth look at financing property development – read more here.
Development finance provides funding for the purchase and building work required to complete the development of a property. At Alternative Bridging Corporation, we provide development finance for a wide range of property development projects, from ground-up construction to renovation across residential developments and commercial properties, including office blocks and industrial units.
See all our Development Finance Products here.
Development finance loans are for property development and are used to assist with the purchase and build costs associated with residential or commercial development projects. It is typically available for between 6 and 24 months. Additionally, we make Development Exit Loans to unlock working capital for investment in other projects – take a look at our new specialist lending product Part X property finance for an alternative to a Development Exit Loan.
Development loan repayments can be from sales or refinance.
There is actually very little difference between a bridging loan and a development finance loan. Both are types of short-term finance secured on a property. Development finance is used specifically to finance a development project and at Alternative Bridging, funding can be used for the following:
When you submit an application for development finance, you will speed up your chance of the application being approved if you are able to provide in-depth information about your plans. Provide as much detail as you can, including:
If you have previous experience in completing successful developments, this track record can help your chances of approval.
LTGDV (Loan to Gross Development Value) is a ratio used to measure the amount of debt financing that is being used to finance a property development, compared to the total estimated value of the development once it has been completed.
LTGDV is calculated by dividing the total loan amount by the estimated GDV.
Alternative Bridging will provide a developer with the funds required to purchase a property and the building work required to complete the development. We will release funds in stages as the work progresses, as a means of ensuring the money is being used to advance the development.
Our Regulated Development Finance is available for up to 12 months to owner-occupiers up to £2M.
Our Regulated Development Finance is for purchase or refinance and includes the site cost, construction, interest and fees. We cover up to 80% of total development cost or up to 100% where a charge can be taken on the borrower’s existing property.
We can provide this if you have additional security to offer.
For residential and commercial properties, our development finance starts at £500,000. The maximum loan is £10,000,000.
In determining the maximum loan available to you we use LTGDV (loan to gross development value) which looks not at the value of the land or property now, but it’s anticipated value once it has been built/redeveloped.
For residential property, assume 65% of GDV or 80% of the cost. For commercial property, we work on a maximum of 60% GDV or 80% of cost basis.
At Alternative Bridging, we work at speed to tailor individual arrangements for our development finance customers, providing a wider selection of options than the banks and service that is second to none. Reflected by the prompt payment throughout the construction period.
Effectively, yes. Some lenders may distinguish between a bridging loan for purchasing a property and property development finance which, as the name suggests, is designed to provide working capital for development. In reality, we’ve always found the distinction to be a fairly artificial one, so our development funding can be used for purchase, refinance, development, equity release or as an exit loan.
The more detail you can provide to support your development finance application, the better. We will ask for draft projections, which should include a cost analysis of improvement and renovation works, a market comparison of the local sales values and the expected occupancy on completion.
The maximum loan is £10,000,000. In determining the maximum loan available to you we use LTGDV (loan to gross development value) which looks not at the value of the land or property now, but it’s anticipated value once it has been built/redeveloped.
Alternative Bridging, like all development finance lenders, is eager to lend. The more information and assurance you can provide, the greater the likelihood of a swift and positive decision.
You can give us that assurance in a range of ways:
The more detail you can provide to support your predictions, the better. Your draft projections, therefore, might include:
Projections are always more compelling when they come with a track record of success. Where you have previously developed residential or commercial property, ensure your portfolio/application reflects your experience.
All our published terms are indicative, and all our UK development finance is individually structured to your circumstances. Offer some form of additional security, therefore, may make approving your loan an easier or quicker process, or enable us to offer a larger sum.
A development exit loan is used to repay outstanding property development finance, once the project is nearing completion.
Unlike a light refurbishment loan where loans are purely for refurbishment, a heavy refurbishment loan is more complex and often requires planning permission. Our Heavy Refurbishment loans often provide bridging finance for converting commercial premises to residential use. They are also suitable for structural reconfiguration and extension of existing residential properties for which planning permission is likely to be required.
