This page is for London property investors, developers and homeowners who need short-term or project finance and want to understand how a bridging loan in London or development finance in London actually works before they commit. It covers the common London situations - breaking a chain on a high-value purchase, buying at auction, funding a refurbishment or conversion, and financing a ground-up or value-add scheme - and what lenders look for.
Working across more than 135 lenders, Propertyze approaches each case criteria-first: we start with who will lend at all on the specific property, borrower and exit, then present the case correctly so it stands the best chance of an offer. London property - high values, leasehold flats, period stock, complex titles and planning - rewards that specialist, evidence-led approach.
Key facts at a glance
- What bridging is: short-term, interest-only finance secured against property, used to bridge a timing gap until a defined exit (a sale or a refinance).
- What development finance is: staged funding for building or major works, typically released in tranches against agreed cost milestones and monitored progress.
- Speed: bridging is built for speed and can move quickly where the legals and valuation allow, though timescales vary with the property, the lender and the conveyancing.
- Cost: as short-term and specialist lending, bridging and development finance generally carry higher rates and fees than a standard mortgage, and interest is often rolled up rather than paid monthly - the total cost of finance matters as much as the headline rate.
- The exit: every lender wants a clear, credible exit before they lend; a weak or untested exit is the most common reason a case stalls.
- Regulation: bridging secured on the borrower's own home can be regulated by the FCA; bridging for investment or development purposes, and development finance, are generally not regulated. The right regime depends on the facts of your case.
- Security: these are loans secured on property, and your property is at risk if the loan is not repaid as agreed.
London bridging use-cases
London throws up a recognisable set of situations where a bridge is the practical tool. Breaking a chain is one of the most common: a buyer wants to secure a high-value London purchase before their own sale completes, and a bridge releases the funds against existing equity so the purchase is not lost to a chain delay. The bridge is then repaid when the original property sells.
Buying at auction is another. London auction lots often complete on a roughly 28-day timetable, far faster than a standard mortgage can usually be arranged, so bridging is frequently used to meet the deadline and the borrower refinances onto a longer-term product afterwards. Because the clock starts on the fall of the hammer, having finance lined up in principle before bidding matters.
Refurbishment and conversion make up much of the rest. Light refurbishment (cosmetic works, a kitchen and bathroom, modernising a tired flat) and heavy refurbishment (structural work, extensions, reconfiguration) both suit a bridge, with the exit usually a sale or a refinance once the work is done and the property re-valued. London also sees a steady flow of conversion work - splitting a house into flats, or office-to-residential schemes brought forward under permitted development rights - where short-term finance funds the project through to completion and a longer-term exit. Planning-gain and value-add plays, where a borrower buys, secures an uplift in value or use and then sells or refinances, follow the same logic.
London development finance
Development finance in London operates against a distinctive backdrop: high gross development values (GDV) on one side, but high build costs, competitive and expensive land, and demanding planning on the other. Lenders price and structure around that reality.
A few standard metrics frame almost every conversation, and it helps to know them in general terms: - Loan-to-GDV: the loan measured against the projected end value of the finished scheme - lenders cap how much of the GDV they will advance. - Loan-to-cost (LTC): the loan measured against total project cost (land plus build plus fees) - this controls how much of your own equity you are expected to put in. - Day-one advance: the funding released at the outset, typically against the land or existing site value, before build drawdowns begin. - Interest roll-up: rather than paying interest monthly during the build, it is commonly added to the facility and settled at the end from the exit.
The specific percentages a lender will go to depend on the scheme, the borrower's experience, the location and the market at the time, so we treat any figures as illustrative rather than fixed. The exit is central: in London that is usually a sale of the completed units into a high-value market, or a refinance onto a term or buy-to-let product where the developer intends to hold. Lenders will pressure-test that exit - sales rates, comparable evidence, and whether a refinance is realistically achievable - before committing.
Regulated versus unregulated - why it matters here
The distinction is not academic; it changes the protections that apply and the process we run. In broad terms, a bridge secured on a property the borrower lives in (or intends to live in) can fall within FCA regulation, while a bridge taken purely for investment or development purposes, and development finance generally, fall outside it. Many London cases are clearly one or the other, but some are genuinely borderline - a part-residential, part-investment situation, or a home being used to fund an investment purchase. We assess the regime on the facts of your case rather than assuming, because getting it wrong affects both the lender route and your protections. The disclaimer at the foot of this page reflects this mixed picture.
Why a specialist broker - and the lender access edge
Specialist short-term and development lending is a relationship-driven, criteria-led market, and the right lender for a given case is rarely the obvious one. Propertyze works across more than 135 lenders, which means we can match a case to a lender whose appetite genuinely fits - the property type, the borrower's track record, the works proposed and the exit - rather than forcing it through a single channel. Just as important is presentation: a development or bridging case that is packaged well, with a credible exit and the right supporting evidence, is treated very differently from one that arrives incomplete. Our role is to find the route that exists and put the case in front of the lender in the form most likely to succeed.
Common complications we handle
- Auction purchases on a 28-day clock where finance has to be ready before the hammer falls.
- High-value PCL (prime central London) purchases that sit above mainstream lending appetites and need a specialist route.
- Leasehold flats with short or unusual leases, or service-charge and ground-rent issues that complicate a valuation.
- Office-to-residential and other permitted-development conversions where the planning position and the build need careful evidencing.
- Heavy refurbishment and structural works where the day-one and works-funded elements have to be structured correctly.
- Borderline regulated/unregulated cases - for example a home being used to fund an investment - that need the regime assessed carefully.
- A weak or single-track exit that needs strengthening or a credible plan B before a lender will engage.
The process
- Initial conversation - we talk through the property, the purpose, the numbers and, crucially, your intended exit.
- Assessment and structure - we work out whether the case is regulated or unregulated, what figures are realistic, and how the facility should be shaped.
- Lender matching - we identify the lenders across our panel whose criteria genuinely fit and approach them with the case.
- Packaging and application - we prepare and present the supporting evidence (valuation, costings, schedule of works, exit plan) and manage the application.
- Through to completion - we coordinate valuation, legals and drawdowns with you, the lender and the solicitors right up to completion.
As a general guide, expect to provide proof of identity and address, details and evidence of the property and any works, a costed schedule for development or refurbishment, and a clear exit plan; for development, lenders will usually want to see relevant experience and may appoint a monitoring surveyor. Timescales vary with the lender, the property and the conveyancing.
Frequently asked questions
How fast can bridging complete for a London auction? Bridging is designed for speed and is regularly used to meet a roughly 28-day auction timetable, but completion still depends on the valuation, the legal title and the conveyancing. The safest approach is to arrange finance in principle before you bid, so the clock is not working against you.
Can I bridge a prime central London purchase? Often yes. High-value PCL purchases can sit above mainstream appetites, but there are specialist lenders who operate in this space. The route depends on the property, the loan size, your circumstances and the exit, which is exactly the kind of case our lender access is built for.
What is loan-to-GDV? Loan-to-GDV measures the loan against the projected gross development value - the expected end value of the finished scheme. Lenders cap the proportion of GDV they will lend; the exact level depends on the scheme, your experience and the market, so any figure should be treated as illustrative.
Can I get finance for an office-to-residential conversion? Yes, conversions including office-to-residential under permitted development are a common use of short-term and development finance. Lenders will want to see the planning position, a costed schedule of works and a credible exit, and the conversion's complexity will shape the structure and pricing.
What exit do lenders want to see? A clear, credible and ideally evidenced exit - usually a sale into the market or a refinance onto a term or buy-to-let product. A weak or untested exit is the most common reason a case stalls, so this is where we focus early.
Speak to a specialist
If you are weighing up a bridging loan in London or development finance in London, a short conversation will tell you quickly whether the case is workable and which lenders are likely to fit. Call 020 7126 8574 or request a call back, and we will reply within one working day.
Your property may be repossessed if you do not keep up repayments on a mortgage secured on it.
Some bridging finance is regulated by the Financial Conduct Authority and some is not; development finance is not regulated. Propertyze is a trading style of City Finance Brokers Ltd, authorised and regulated by the Financial Conduct Authority (FCA No. 766295). We conduct both regulated and unregulated business, so not all products provided through us are regulated by the FCA.