Question 1

What is bridging finance and how does it work in Kensington?

Accepted Answer

Bridging finance is a short-term secured loan used to bridge the gap between a property purchase and longer-term funding such as a mortgage or property sale. In Kensington, bridging loans are particularly valuable because the ultra-competitive property market demands speed and certainty. You borrow against the property you are purchasing (or an existing property you own), receive funds within 5 to 10 working days, and repay the loan when your exit strategy completes — typically within 1 to 24 months. Rates start from 0.55% per month with loans available from £100,000 to over £25 million. Visit our services page to explore the full range of bridging products we arrange across the Royal Borough.

Question 2

How quickly can I get a bridging loan in Kensington?

Accepted Answer

We deliver a Decision in Principle (DIP) within 4 hours of receiving your enquiry. Full completion — from application to funds in your solicitor's account — typically takes 5 to 10 working days. For urgent Kensington transactions we have completed in as few as 3 working days. The speed of bridging finance is one of its primary advantages in the Kensington market, where premium properties attract multiple offers within days of listing. Contact us today for same-day indicative terms on your Kensington transaction.

Question 3

What interest rates can I expect on a Kensington bridging loan?

Accepted Answer

Interest rates for Kensington bridging loans start from 0.55% per month. Your exact rate depends on several factors: the loan-to-value (LTV) ratio, property type and condition, your experience as a borrower, the strength of your exit strategy, and the loan amount. Premium Kensington properties with strong asset values and clear exit routes through sale or refinance typically attract the most competitive rates from our panel of 50+ specialist lenders. Use our bridging calculator to get an instant estimate of your monthly costs, or contact our team for a precise quote tailored to your circumstances.

Question 4

What is the maximum loan-to-value (LTV) available for Kensington properties?

Accepted Answer

We arrange bridging loans up to 80% loan-to-value on Kensington properties. For super-prime addresses such as Kensington Palace Gardens or Holland Park, certain lenders on our panel may consider higher leverage on a case-by-case basis, given the exceptional asset quality and liquidity of these locations. The LTV you are offered will depend on the property type, your exit strategy, and the lender's assessment of the asset. Second charge bridging loans are also available, allowing you to release additional equity from an existing Kensington property without disturbing your current mortgage. Explore our full range of services to find the right structure for your needs.

Question 5

Can I use bridging finance to buy a property at auction in Kensington?

Accepted Answer

Yes — auction finance is one of our most popular services. When you purchase a property at auction, you are legally required to complete within 28 days of the hammer falling. Standard mortgages cannot meet this deadline, but bridging finance can. We arrange auction bridging loans that complete well within the 28-day window, giving you the confidence to bid on premium Kensington lots at major London auction houses. We recommend arranging a DIP before auction day so you can bid with certainty. Visit our dedicated auction finance page for full details on how we help Kensington auction buyers, or contact us to arrange pre-auction funding.

Question 6

What types of property can I use bridging finance for in Kensington?

Accepted Answer

We arrange bridging finance for virtually all property types across the Royal Borough of Kensington. This includes residential houses and flats, period conversions, HMOs, commercial properties, mixed-use buildings, land, and development sites. We have funded transactions involving everything from Grade II listed townhouses in Kensington Square to modern apartments near the Earls Court regeneration, Victorian terrace conversions in Ladbroke Grove, and commercial premises in North Kensington. Whatever the property type, our lender panel includes specialists with appetite for Kensington assets. Browse the areas we cover across the borough for location-specific insights.

Question 7

What exit strategies do Kensington bridging lenders accept?

Accepted Answer

Kensington bridging lenders accept a range of exit strategies. The most common are: refinancing to a standard residential or buy-to-let mortgage once the property is in a mortgageable condition; sale of the bridged property on the open market; sale of another property in your portfolio to repay the loan; development completion and unit sales; and refinancing to a longer-term commercial loan. The strong Kensington property market — with its deep pool of buyers and consistently high demand — means lenders have particular confidence in sale-based exits for Royal Borough properties. Discuss your exit strategy with our team and we will match you with the most suitable lender.

Question 8

How much does bridging finance cost in Kensington?

Accepted Answer

The total cost of a Kensington bridging loan comprises several elements. Monthly interest rates start from 0.55%. An arrangement fee of typically 1% to 2% of the loan amount is charged by the lender. You will also pay valuation fees for a RICS survey of the property, legal fees for both your solicitor and the lender's solicitor, and typically an exit fee of around 1% when the loan is repaid. Some lenders offer products with no exit fees or reduced arrangement fees depending on the loan profile. Our bridging calculator provides an instant breakdown of estimated costs for your specific transaction. We always provide a full, transparent cost schedule upfront so there are no surprises.

Question 9

Do I need planning permission to get refurbishment bridging finance in Kensington?

Accepted Answer

It depends on the scope of your project. Light refurbishment — cosmetic upgrades, new kitchens and bathrooms, redecoration, and minor internal alterations — typically does not require planning permission and is funded through standard refurbishment bridging. However, the Royal Borough of Kensington and Chelsea operates one of the strictest planning regimes in London. Extensive conservation area coverage across Ladbroke Grove, Holland Park, and central Kensington means that even relatively minor external changes may require permission. Structural alterations, basement extensions, and works to listed buildings all require formal consent from RBKC. Our lender panel includes specialists experienced in lending against properties subject to Kensington planning constraints. View our refurbishment finance service for more details.

Question 10

Can I get a second charge bridging loan on my Kensington property?

Accepted Answer

Yes, we arrange second charge bridging loans against Kensington properties. A second charge loan sits behind your existing mortgage, allowing you to release equity from your Kensington property without refinancing your current mortgage. Given the high property values across the Royal Borough — from £950,000 in Kensal Rise to over £15 million on Kensington Palace Gardens — second charge bridging can release significant capital for further investment, property acquisition, or business purposes. Second charge rates are typically higher than first charge rates, reflecting the additional risk to the lender. Contact us to discuss whether a first or second charge structure is most appropriate for your needs.

Question 11

Is Kensington bridging finance regulated by the FCA?

Accepted Answer

Bridging finance can be either FCA-regulated or unregulated, depending on the purpose of the loan. If the bridging loan is secured against a property that you or a close family member will occupy as your main residence, the loan is FCA-regulated and must be arranged through an FCA-authorised intermediary. If the loan is for investment purposes — buying a rental property, funding a development, or any transaction where the property will not be your home — it is unregulated. The majority of Kensington bridging transactions are unregulated investment deals. We arrange both regulated and unregulated bridging finance and will advise which category applies to your specific circumstances. Read our FAQ page or contact us if you are unsure which applies to you.

Question 12

How much can I borrow with a Kensington bridging loan?

Accepted Answer

We arrange Kensington bridging loans from £100,000 to over £25 million. The amount you can borrow depends on the property value, the LTV ratio offered by the lender (up to 80%), and the strength of your exit strategy. For ultra-high-value Kensington properties — particularly those on Kensington Palace Gardens, Holland Park, and in the embassy quarter — we access specialist lenders, private family offices, and Middle Eastern banking institutions who can accommodate larger loan sizes that mainstream bridging lenders cannot. Use our calculator to estimate borrowing costs, or contact our team to discuss your specific requirements.

Question 13

What is chain-break bridging finance and how does it help Kensington buyers?

Accepted Answer

Chain-break bridging finance allows you to purchase your new Kensington property without waiting for your existing property to sell. In a competitive market where sellers favour buyers who can proceed without a chain, this gives you a significant advantage. The bridging loan funds your new purchase immediately, and you repay it when your existing property sells. This is particularly valuable in Kensington where premium properties often receive multiple offers and vendors will almost always choose the buyer who can proceed fastest and with the most certainty. Chain-break bridging effectively allows you to act as a cash buyer. Visit our services page to learn more about chain-break finance, or get in touch with our team to discuss your situation.

Question 14

What documents do I need to apply for bridging finance in Kensington?

Accepted Answer

The documentation required for a Kensington bridging loan is significantly lighter than for a traditional mortgage. At the initial stage, we need a summary of the transaction (property details, purchase price, loan amount required), your proposed exit strategy, proof of identity and address, and a brief overview of your property experience. Once we have a DIP agreed, the lender will require a RICS valuation of the property, solicitor details, proof of deposit funds, and any planning documents if relevant to the project. The streamlined documentation process is one reason bridging finance can complete so much faster than conventional lending. Contact us to start the process — we can issue a DIP within 4 hours of receiving your initial enquiry.

Question 15

Can overseas buyers or non-UK residents get bridging finance in Kensington?

Accepted Answer

Yes, bridging finance is available to overseas buyers and non-UK residents purchasing property in Kensington. The Royal Borough attracts significant international investment, and our lender panel includes specialists who actively lend to foreign nationals, offshore companies, and international trusts. The process may require additional due diligence and documentation — including enhanced identity verification and source-of-funds checks — and rates may be slightly higher than for UK-resident borrowers. However, bridging finance remains one of the most accessible forms of property lending for international buyers in Kensington. Contact our team to discuss your specific circumstances and residency status.

Question 16

What happens if I cannot repay my Kensington bridging loan on time?

Accepted Answer

If your exit strategy is delayed and you cannot repay your bridging loan by the agreed term date, there are several options. Many lenders will agree to a short-term extension if you can demonstrate progress towards your exit — for example, if a property sale is under offer but has not yet completed. Extension fees typically apply. Alternatively, we can arrange refinancing to a new bridging facility with a different lender to provide additional time. In the worst case, if no exit materialises, the lender has the right to enforce their security and take possession of the property. This is why we place such emphasis on exit strategy strength at the outset — a robust, realistic exit plan is the foundation of every bridging loan we arrange. Speak to our advisors to plan your exit strategy before you borrow.

Kensington Bridging Finance FAQs

Frequently Asked Questions About Kensington Bridging Finance

Explore Kensington Bridging Finance

Our Services

Bridging Calculator

Areas We Cover

Contact Us

Still Have Questions About Kensington Bridging Finance?