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Bridging & Development

Short Term Finance (Bridging Finance)
Auction finance, Chain break finance, Refurbishment loans & Development Finance

Bridging Finance (Short Term Loans)

Bridging finance loans can be agreed between 1 - 24 months

Free Initial Consultation 
& Lender Overview

Choice of Larger Loans

75% LTV

85% LTV for light refubishments

70% Loan to GDV

100% of works financed

Why Clark Finance?
  • Get finance quickly even on unmortgageable properties
  • 100% Loan to Value (LTV) available with additional security
  • 85% Loan to Value (LTV) bridging for renovations
  • 70% Loan to Gross Development Value (GDV)
  • 100% of works funded in arrears
  • Quick Completions
  • Individual names or Limited Company available
  • Interest Only 
  • Second Charge Finance 

Light & Heavy Refurbishment Loans

A Short Term Loan used to acquire a building which is not currently mortgageable and therefore requires a bridging loan first. 

Whilst on the bridging loan, the works are undertaken on the property. 

Auction Finance

Often Auction Houses will require for a purchase to be completed in under 28 days. In these circumstances many applicants will opt for Auction Finance which is a Short Term Loan agreed in order to quickly obtain the property. 

 You can then look to remortgage to a your preferred lender straight away or after a period of 6 months depending which lender you decide to remortgage with. 

Self Build Finance

Looking to build your own home. We have lenders who can help you acheive your goals.

We have access to competitive rates. 

Once you have finished building your dream home, you can then look to remortgage on to a normal residential mortgage afterwards.

Development Finance

  • Planning Bridge: A short term loan enabling you to acquire the property/land and obtain planning permission. Many lenders can then agree to move you straight onto a Development loan. 

  • Developer Exit: A short term loan without any early repayment charges used to free up cash funds to help developers move onto the next project. 
  • Land Finance: Land with or without planning where time is required to gain or enhance planning. Developers often also use this solution to purchase a site quickly whilst seeking development finance. 
  • Self Build: This is a new area within the market and is used by developers selling plots on a self build basis to home owners wanting to build out their own property. 
  • Commercial Mortgages: Finance for vacant commercial property, start up trading businesses, equity release and complex short term finance. 
  • Auction Purchase (28-day completion): Speed is essential and our lenders can typically provide an immediate decision in principle and completion within 2/3 weeks. 
  • Part Completed Developments: This has become common requirement with many developers running out of funds with the project left unfinished. Most development finance lenders are not keen on part completed schemes and we specialise in working with funders that can put in place funding for these schemes to complete the remaining works.

Investor Strategies
Developments, Refurbishments & Investments

Buy & Flip 

This is the term used for someone who looks to buy a property or some land, quickly add value by either adding planning permission, renovating the property or adding an extension. You can then sell the property and move on to the next project. 

Add Value & Rent Out 

This is for your classic property investor looking to add value in each property. Essentially you buy a property, complete a refurbishment, change of use or extension and then keep the property as a buy-to-let afterwards.  

Some buy-to-let lenders will apply a 6 month rule meaning you can not remortgage for the first 6 months however we have access to lenders with no 6 month rule.

Commercial Investment Valuation

This strategy relates to those buying a HMO looking to get a Higher Market Value by getting an Investment Value which can result in a much higher valuation than a Bricks & Mortar Valuation. See HMO section for more detail

Example 1 - Heavy Refurbishment Loan (Buy & Flip)

Rate from 0.65% Per Month

A large detached house was purchased and converted into three separate flats in London


Purchase Price - £500,000

Project Cost - £100,000 

(A) £350,000 - Clients Deposit

(B) £9,045 - Cost of Bridging Loan (5 Month Project)

(C) £4,875 Lenders Arrangement Fee (which can be added to the loan)

(D) £750 - Legal Costs

(E) £1200 - Valuation Cost 

(F) £15,000 - Stamp Duty Land Tax (SDLT)

(1) Total Input From Client (A,B,C,D,E & F)- £380,420

(2) Loan Required - £250,000 (£150,000 for the deposit & £100,000 for the works)

(3) Value of Property Once Finished (GDV) - £800,000

Pre Tax Profit (3 minus (1 & 2) = £169,580


Example 2 - Light Refurbishment Loan (Buy & Flip)

Rate from 0.79% Per Month

Rate from 0.79% Per Month

A detached house was purchased which needed a renovation as it was in a state of disrepair and needed new bathrooms, a new kitchen and other remedial works. 

Purchase Price - £100,000

(A) £25,000 - Clients Deposit

(B) £20,000 - Project Cost

(C) £4,326 - Cost of Bridging Loan (6 Month Project) 

(D) £1,462 - Lenders Arrangement Fee (added to loan)

(E) £650 - Legal Costs

(F) £450 - Valuation Cost 

(G) £3,000 - Stamp Duty Land Tax (SDLT)

(1) (A,B,C,D,E,F & G) = £54,888

(2) Loan Required - £75,000 (£75,000 for the deposit & £0.00 for the Works as these were self funded by the client)

(3) Value of Property Once Finished (GDV) - £150,000

Pre-Tax Profit (3 minus (1 & 2) = £20,112


Example 3 - Light Refurbishment Loan & Buy to Let (Add Value & Rent Out)

Rate from 0.79% Per Month

A detached house was purchased which needed a renovation as it was in a state of disrepair and needed new bathrooms, a new kitchen and other remedial works. 


Purchase Price - £100,000

(A) £25,000 - Clients Deposit

(B) £20,000 - Project Cost

(C) £4,326 - Cost of Bridging Loan (6 Month Project) 

(D) £1,462 - Lenders Arrangement Fee (added to loan)

(E) £650 - Legal Costs

(F) £450 - Valuation Cost 

(G) £3,000 - Stamp Duty Land Tax (SDLT)

(1) (A,B,C,D,E,F & G) = £54,888

(2) Loan Required - £75,000 (£75,000 for the deposit & £0.00 for the Works as these were self funded by the client)

(3) Value of Property Once Finished (GDV) - £150,000

Pre-Tax Profit (3 minus (1 & 2) = £20,112


Instead of selling the property the Client instead decided to keep the property for 2 years as a Buy to Let


Buy-to-Let Rate from 1.65% Per Year


Buy to Let Remortgage after month 6

Market Value £150,000 

Bridging Loan to be repaid £76,462 (£75,000 + £1462 Lenders Arrangement Fee)

Rental income £700 pcm (5.6% Rental Yield)

New loan £112,500 (75% LTV of £150,000)

Additional funds raised/Capital raised £36,038 (This money was put back into the clients bank account)

Free Valuation

£600 Legal Cost

£995 Arrangement Fee (added to loan)

1.65% 2 Year Fixed

£156.05 Monthly Mortgage Payment (interest only)


So to conclude:

This means the client only effectively put in £20,445 for the whole project (£54,888 - £36,038)

They then had an Asset worth £150,000 producing a rental income of £700 per month

Due to the Fact the Client refurbished the property in the beginning, the clients initial contribution was £54,888 for the initial purchase and refurbishment of the property.

After the buy-to-let remortgage was finished the client had spent an additional £1,595 remortgaging the property on to the buy to let mortgage. This brings the total contribution including the remortgage to £56,483. 

During the remortgage process, the client decided to withdraw the value they had added to the property of £36,038 by doing a the Capital Raise as the property was now valued higher at £150,000. These funds which were raised were intended to be used towards another property purchase. 


For perspective, if you had instead just immediately bought a £150,000 investment property (not doing any refurbishments), you would normally require a deposit of at least 25% which is £37,500 including additional Stamp Duty cost of £4,500. This would total £42,000 before any mortgage costs had been added. If you factor in Mortgage costs used above this would be approximately £43,595 in total.

So because the client capital raised £36,038 from the property after it was refurbished to use towards their next property acquisition. This means the above strategy would have resulted in a saving of at least £23,150 on a property now worth £150,000.  




Example 4 - HMO Refurbishment (Commercial Investment Valuation)

Rate from 0.79% Per Month

A client bought a property close to the a University. This was a 4 bedroom detached house which was converted into a 7 bedroom HMO with full planning permission (Sui Generis) including a HMO License.


Purchase Price - £300,000

(A) £75,000 - Clients Deposit

(B) £30,000 - Project Cost

(C) £12,098 - Cost of Bridging Loan (6 Month Project) 

(D) £4,387 - Lenders Arrangement Fee (added to loan)

(E) £1250 - Legal Costs

(F) £1200 - Valuation Cost 

(G) £9,000 - Stamp Duty Land Tax (SDLT)

(1) (A,B,C,D,E,F & G) = £132,935

(2) Loan Required - £225,000 (£225,000 for the deposit & £0.00 for the Works as these were self funded by the client)


Rental income expected: £3500 Per Month (£42,000 per annum - 10% Yield)


It is important to know there is potentially two different valuations for this property. 

Please see our HMO section for more details.


Bricks & Mortar (Vacant Possession Value)

(3) Value of Property Once Finished (GDV) - £380,000

Pre Tax Profit (3 minus (1 & 2) = £22,065


Commercial Investment Valuation

(3) Value of Property Once Finished (GDV) - £420,000

Pre Tax Profit (3 minus (1 & 2) = £62,065





Glossary - Terms Explained

What do these terms mean?

  • Loan to Value (LTV) - The percentage of loan required against the properties value. Example - 75% LTV against a £100,000 property would be a loan of £75,000.
  • Gross Development Value (GDV) - When completing a development, this value is the properties end value. 
  • Loan to Cost - The loan involves the property purchase price plus the cost of works, so the borrowing is based on a percentage of the two combined values.
  • Loan to Gross Development Value bases the borrowing on the properties end value.
  • Day 1 Advance & Tranches - The day 1 Advance is how much the lender is willing to lend you at the beginning of the loan. The subsequent segments of the loan will then be released through smaller loans at certain stages through out the build known as tranches. 


How much can you borrow?

How much can you borrow?

This question depends whether you are borrowing just against the property/land or whether you also require the works to be funded as well. 

  • Standard Bridging - Lenders will typically lend up to 75% LTV against the value of a property/land OR upto to 100% LTV if additional security is provided. 
  • If the works need to be funded, lenders will be able to lend against either the Loan to Cost or the Loan to Gross Development Value
  • Loan to Cost involves the property purchase price plus the cost of works. Example - 90% Loan to Cost
  • Loan to Gross Development Value bases the borrowing on the properties end value. Example - 70% Loan to Gross Development Value


Retained, Rolled up or Serviced Interest

Retained, Rolled Up or Serviced Interest

Retained Interest (All interest payments taken from loan at the beginning)

This is where the monthly payments are deducted from the Gross Loan at the beginning of the loan. For example if you get a 12 month bridging loan at 75% LTV. You would receive 75% LTV minus the 12 monthly payments which have already been Retained from the loan. You also pay interest based on the Gross Loan from the beginning. 

An easy way of getting a larger loan day 1 is simply reducing the amount of monthly payments needing to be Retained at the beginning. So if a project can be completed in 6 or 9 months. This would mean only 6 or 9 months payments would have to be retained instead of 12 months payments being retained.

Rolled Up Interest (Similar to Retained interest however a much cheaper option as you only pay interest as it is accrued)

This is where the interest is calculated more favourably. Instead of paying interest on the full Gross Loan from the beginning (such as with Retained Interest). You only pay Interest on what has been used so far. So if you had a 75% LTV bridging loan for 12 months, you would save money if the interest is Rolled Up as opposed to being Retained as you would only be paying interest on what you have drawn down and used.

Serviced Interest (Pay monthly)

This is where you decide to pay the interest monthly (like a normal mortgage). 
No monthly payments are deducted from the loan (such as with Retained or Rolled up interest), so with this option as you are making the payments yourself each month. 
You will need to be able to evidence you can service the interest payments through your income.


Do you get a rebate if you finish early?

Yes - you do get a rebate

If you take a 12 month bridging loan to refurbish a property and finish the necessary works and refinance the property with in 6 months. You will only be charged for what you have used. So you would be rebated with the 6 months bridging finance you did not end up using. 




Bridging Finance Rates

Rates starting from 0.40% Per Month


  • Rates start as low as 0.40% Per Month (4.80% Per Annum)
  • For a free quotation, please call us now on 0204 518 2215
  • Rates vary depending on circumstances and the loan to value required



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