Bridging Loans for Prime London Property in Kensington, Chelsea and Mayfair
Updated: 2 hours ago
In prime London, speed often decides who secures a property. Auction purchases, chain breaks, off-market opportunities and homes that need work before a mainstream lender will touch them all need funding faster than a standard mortgage can deliver.
Bridging finance fills that gap. It is short-term lending, usually for one to 24 months, secured against property and repaid from a sale or a refinance.
When bridging finance is used
Breaking a chain: buying your next home in Chelsea or Holland Park before your current property has sold.
Auction purchases: auctions usually require completion within 28 days.
Refurbishment: buying a property a mainstream lender will not lend on until works are done, such as a mansion flat with no working kitchen.
Lease and title issues: resolving a short lease or a title problem that blocks a standard mortgage, then refinancing.
Development and conversion: funding the purchase of a site or building ahead of development finance.
Releasing capital: raising funds against property quickly while longer-term arrangements are put in place.
Regulated and unregulated bridging
If the loan is secured on a home that you or a close family member live in, or will live in, it is usually a regulated bridging loan and must follow FCA mortgage rules. Loans secured on investment property, commercial property or development sites are usually unregulated. We introduce both types to our broker partner, who will confirm which rules apply to your case.
Open and closed bridging loans
Closed bridging
A closed bridge has a fixed repayment date, normally because contracts on the property you are selling have already been exchanged. Lenders see this as lower risk, which can mean better terms.
Open bridging
An open bridge has no fixed repayment date, but you still need a credible exit, such as a planned sale or refinance. Terms usually run for up to 12 to 24 months.
First and second charge loans
A first charge loan is the main loan secured on the property. A second charge sits behind an existing mortgage, letting you raise funds without repaying a loan you want to keep. Second charges often need the first lender's consent and generally cost more.
What lenders look at
The exit: how and when the loan will be repaid. This is the most important factor.
Loan to value: most bridging lenders lend up to 70% to 75% of value, and less on very high-value or unusual properties.
The property: its value, condition, tenure and saleability. Prime London stock is generally well regarded, but lenders still check lease lengths, listed status and planning.
The borrower: your assets, experience and, for refurbishment or development, your track record.
What bridging costs
Bridging is priced monthly rather than annually and costs more than a term mortgage. Expect an arrangement fee, valuation and legal costs, and sometimes an exit fee. Interest is often retained from the loan upfront or rolled up, so there may be no monthly payments. Always compare the total cost of borrowing, not just the headline rate.
Who we help
Homeowners, investors and developers across Kensington, Chelsea, Mayfair, Knightsbridge, Belgravia, Notting Hill, Holland Park, Fulham and the wider West and Central London market.
Next steps
Need to move quickly on a prime London property? Use our enquiry form to tell us about your plans. We review your requirements, package the case and introduce you to our specialist broker partner. Our service is free to clients. See how it works.
Kensington Real Estate Finance is an introducer and does not give financial advice. Your home or property may be repossessed if you do not keep up repayments on a loan secured on it. Bridging finance is short term and you need a clear plan to repay it. This article is general information, not a recommendation.
Kensington Real Estate Finance is not associated with, affiliated with or endorsed by Kensington Mortgage Company Limited (trading as Kensington Mortgages, kensingtonmortgages.co.uk), company number 03049877, registered office Ascot House, Maidenhead Office Park, Maidenhead, SL6 3QQ.
Comments