Finish and Exit Bridging Loan - LDN Finance

Finish and Exit Bridging Loan

Article by Chris Oatway Co-Chief Executive Officer

What was the situation?

An existing client of ours suffered multiple delays on their development project; to convert an office building to eight residential apartments, which included an extension on the roof. The delays caused were as a result of their contractor’s firm collapsing part way through the project construction.

What was the issue?

The client had come to the end of their term with their existing lender and had run out of funds to complete the project.

What was the process?

We had to source a lender who was able to value the site based on how close we were to achieving the gross development value (GDV). Many lenders would request that when a valuation is carried out, it is to be done on the basis of what would the property sell for if it went on the market in its current condition. As the property was part built and none of the units were finished, it would mean it could only be sold to a developer and typically they would require a 25% margin. Once this is built in alongside the acquisition costs, including stamp duty and legals, it would reduce the residual valuation considerably and therefore we would not be able to get the loan that was required.

What was the solution?

We sourced a lender who was able to support a valuation figure that was only marginally lower than what the remaining costs of the project were, less the GDV. With this high valuation, we could refinance the existing development lender, increase the leverage and provide the much needed additional funding that was required to complete the development works and provide sufficient time for the developer to sell the units.

Need competitive specialist funding?
We can help.

Get your project over the line at market-leading rates with the unrivalled knowledge and network of our development, commercial and bridging finance specialists. Our expert advisers are on hand to find the ideal solution for your next or existing project, no matter the complexity.



Our happy clients

LDN Finance were on the ball, helpful, supportive and nice to deal with. They were brilliant at back channelling with both lender and lawyers. We had tricky development and bridging finance and a short time frame. I would recommend them.

Mr. H

April 2021

LDN Finance are a very professional and helpful company. We have done several deals though Chris and the Specialist team and I would thoroughly recommend them.

Mr. S

August 2021

An extremely professional service, explaining different stages of the bridging refinance process. I was kept informed with regular updates as to progress and requests for additional information. I would recommend with confidence.

Ms. M

August 2021

Related Case Studies