'Refinancing' Bridging and Development Loans - How?

So, what do you need to know about refinancing an existing property loan...

If you are using short-term property finance, such as a bridging loan or development finance, you know how important it is to manage your exit strategy. But sometimes, things don’t go exactly to plan! and that’s where refinancing comes in.

Why Refinance? Refinancing your current loan can offer several key benefits:

• Better terms (term refinancing)
  

• Access to more capital (cash-out refinancing)
  

• Improved interest rates (rate refinancing)
  

• More time to complete your project or sell the property
  

• Avoidance of repossession or financial pressure
  

Whether your original exit route, as a home builder is delayed or you’re simply looking for a better deal, refinancing can provide the breathing room you may need.

Example of Bridging and Development Refinancing Services

Golden Trust Capital is an example of a financier that understands the world of short-term property finance - both the opportunities and the challenges and they are one of many companies that can help refinance existing loans:

• To extend your timeline
  

• To unlock more equity for a new deal
  

• To improve your loan terms or rates
  

• To avoid default or forced sale
  

GTC (Golden Trust Capital) works with a wide range of lenders and can arrange facilities from £25,000 up to £250 million which can be tailored to your project; Types of of refinancing products are outlined below:

1. Bridging Loan Refinance

Also known as “re-bridging,” this replaces your current bridging loan. It’s usually secured with a first or second charge on your property and can be arranged in as little as two weeks. Terms range from 1 to 24 months.

2. Property Development Refinance
- Senior Debt: (1st charge) Typically covers up to 100% of construction costs and up to 65% of GDV.
- Mezzanine Finance: (2nd charge) A smaller loan sitting behind the senior debt, used to release equity.
- Other Options: Stretched Senior Debt, 100% Structured Finance, Preferred Equity, and Joint Ventures.

3. Development Exit Finance

This is designed for developers who are nearing the end of a project or have just finished construction. Because the risk is lower at this stage, the terms are often more favourable. This finance gives you time to:

- Market the property for sale
- Secure long-term finance
- Finalise outstanding works

Also known as Finishing and Exit Loans or Sales Period Finance, it’s a great option when you need that final push.

Why work with SHEDyt's partner Golden Trust Capital?

GTC has a strong network of private and specialist lenders - from private investors to family offices to private equity firms. They know how to structure your refinance in a way lenders understand and will work with you to get you the best possible rates.

If your exit plan is falling through or you just want a better deal, feel free to book a meeting with our associate Christopher May of Golden Trust Capital on this link > goldentrust.youcanbook.me 

#propertydeveloper #propertydevelopment #newbuild #propertyfinance #housebuilder #homebuilder

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