What we see in London
- Auction purchases of ex-local-authority flats, short-lease flats, and houses in need of work in the outer boroughs. Allsop, Savills, Barnard Marcus and Auction House London run the big rooms; lots go under offer fast and completion is 20 or 28 days.
- HMO conversions in Article 4 boroughs, where the licence and planning position decide whether the exit works.
- Short lease purchases where a bridge funds the purchase and the lease extension, and the property is then mortgageable at a much higher value.
- Development exits on small schemes of four to twenty units across the outer boroughs and the commuter belt.
- Commercial and mixed use on high streets: shops with flats above, offices with permitted development potential.
- Large loans. Single loans of £2m to £25m on prime and central London residential and commercial property, often from private lenders and funds that do not advertise.
Terms in London
Residential investment property in London attracts the best pricing in the market: from around 0.55% per month at lower LTVs, up to 75% loan-to-value with most lenders and higher with additional security. Commercial pricing is also keener than elsewhere. Valuers are plentiful and quick; the constraint in London is usually the legal work on leasehold titles and the competition for the property itself.
Points specific to London
- Leasehold dominates. Lenders want 70+ years unexpired at the end of the term; shorter leases need a lease-extension plan and a lender who will fund it.
- Article 4 directions in many boroughs remove permitted development rights for HMOs. Check before you buy.
- Ex-local-authority blocks: some lenders exclude high-rise or deck-access, and cladding (EWS1) still affects flats in taller buildings.
- Stamp duty at London prices is a significant cash item that the bridge will not fund.
Areas covered
All 32 boroughs and the City of London, from Barnet to Bromley and Hillingdon to Havering, plus the M25 commuter belt into Surrey, Kent, Essex and Hertfordshire.
About the numbers on this page. Rates, fees and loan-to-values are typical market ranges for unregulated bridging in England, given so you can size a deal. They are not an offer. Your terms depend on the property, the exit, the lender and you.
Questions about bridging in London
Can I bridge a short-lease flat in London?
Yes. It is one of the most common London deals. The bridge funds the purchase and the lease extension premium; once extended, the flat is mortgageable and worth more, and the bridge is refinanced or the flat sold.
Do lenders bridge ex-council flats?
Most will, subject to the block. High-rise, deck access, non-standard construction and cladding issues narrow the field. Send us the address and we will tell you which lenders are comfortable with that block type.
Is there a maximum loan?
Not in practice. Loans above £5m come from a smaller group of lenders and need more structure, but they are arranged regularly on London property.
Tell us the deal.
A few numbers and a postcode is enough for a first view. Indicative terms cost nothing and commit you to nothing.