Problem
- First-time developer acquiring a development site in the South East of England
- Urgent need for swift completion due to environmental restrictions (nesting season constraints — site would need to pause if not completed in time)
- Required structured finance to enable both purchase and development
- As a first-time developer, the client lacked direct construction experience; hired a project manager to oversee site development while they focused on running their primary business
- Challenge: securing financing that recognised this management structure
Solution
Selected a lender specialising in both bridging and development finance, allowing:
- Rapid bridge finance approval to secure the site before it was relisted
- Immediate access to funding, preventing costly delays due to seasonal restrictions
- A seamless transition from bridge finance to a development loan, reducing overall financing costs
Financial structuring:
- 80% of purchase price, equating to 60% of open market value (OMV)
- Lender provided funding aligned with the client's development strategy
- Minimised upfront capital commitment, enabling greater financial flexibility
Outcome
- Secured a dual finance package — bridging loan followed by a development facility
- Reduced overall financing costs by streamlining the transition from bridge to development loan
- Ensured the client could commence construction immediately without waiting months for additional financing approvals
Key Lesson
Using a single lender that handles both bridging and development finance cuts cost and complexity at the transition point. The environmental constraint (nesting season) created genuine urgency that a slower finance process would have missed.
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Development exit: pressure off, return maximised · Development finance exit: pressure into profit · Using a bridge to avoid loss of funds