Bridging finance for offices

The office advantage of short-term bridging

The UK bridging market has moved firmly into the mainstream. In 2024, the national loan book passed £10 billion for the first time and forecasts suggest it could approach around £12.2 billion in 2025. The story behind the numbers is simple: faster decisions, broader uses, and more lenders competing for quality cases. For office owners, investors and developers, that shift translates into real-world opportunity.

Speed is the defining feature. Average completion times tightened to roughly 38 days late in 2024 and early 2025 datasets show deals moving closer to around 32 days. In selected cases, regulated transactions have completed in as little as 10 working days when documentation is packaged well. That time-to-funds advantage can make the difference between winning an off-market purchase, keeping a chain intact, or securing contractors before costs escalate.

Pricing has also become more competitive. Industry trackers show average monthly rates easing in 2025 - for example, moving from about 0.86% in Q1 to near 0.81% in Q2 in some series - while other broker datasets indicate quoted averages around 0.64% for strong cases. Costs still vary by loan-to-value, asset type and whether a deal is regulated or unregulated, but downward pressure and lender competition are helping viable schemes stack up.

Use cases are diversifying. Purchase deals have grown as a share of activity and there is clear momentum behind refurbishment, office-to-residential conversion, hybrid workspace, and value-add repositioning prior to longer-term refinance. Regulated bridging volumes are rising steadily under FCA oversight, which matters if an office conversion includes residential occupation. Exit routes remain concentrated in property sale, buy-to-let remortgage and commercial refinance - so coherent exit planning is not optional, it is core underwriting.

The market is bigger, faster and more competitive - but lenders are scrutinising exits and asset values more closely than ever.

If you are weighing whether bridging suits your office project, the key questions are straightforward: can the short-term finance unlock value that a slower facility cannot, is pricing aligned with your projected uplift, and is your exit credible on conservative assumptions? When the answers are yes, bridging can be the strategic hinge for your acquisition, retrofit or conversion.

Who benefits most right now

Bridging suits office owners and investors needing rapid capital for time-sensitive opportunities - auction purchases, off-market deals, chain breaks, or urgent capex. It also suits developers undertaking refurbishments, reconfigurations or shell-and-core works where speed and staged drawdowns can compress programme timelines. Landlords repositioning secondary stock to meet energy standards or to create flexible workspace often find bridging is the pragmatic bridge to a cheaper, longer-term commercial mortgage once works complete and stabilised income is evidenced. For mixed-use or conversion schemes with a potential residential element, regulated bridging may be appropriate under FCA rules.

Bridging can also help occupiers acquiring their own premises where timing is tight, as well as professional investors consolidating portfolios. The common thread is a clear route to repayment - a sale, a remortgage, or a commercial refinance - that can be evidenced and stress-tested.

Your funding choices at a glance

1. Regulated bridging - for cases with a residential occupation element.

2. Unregulated commercial bridging - for pure commercial or investment offices.

3. Light refurbishment bridging - non-structural upgrades and compliance works.

4. Heavy refurbishment bridging - structural or material change of use.

5. Development exit bridging - complete works, release retentions, stabilise income.

6. Auction finance - fast completions aligned with 28-day timelines.

7. Second charge bridging - additional security behind an existing first charge.

8. Office-to-residential or hybrid conversion bridging - short-term to facilitate change of use.

Cost, impact, returns and risks

Can you qualify and what lenders look for

Eligibility is broader than many expect, but discipline counts. Lenders prioritise the quality of the security and the clarity of the exit ahead of perfect credit. For offices, a credible business plan is essential: purchase rationale, works schedule, realistic costings, contingency, and timescales. Surveyor reports and planning status must support your assumptions, especially where you are changing use or undertaking heavier refurbishments.

Loan-to-value is typically assessed against the current or post-works value, with leverage flexed for asset quality, location and sponsor experience. Clean title, demonstrable source of deposit, and evidence of tax and regulatory compliance will speed underwriting. If the property will be occupied by you or family post-conversion, regulated bridging may be required under FCA rules.

Kandoo can help package your application to lender expectations, streamlining valuations, legals and drawdown mechanics. Being documentation-ready - identity, corporate structure, leases, accounts, planning and building regulation evidence, contractor quotes and insurance - is often the difference between average timing and the faster completions seen in the best-performing cases.

From enquiry to completion - the steps

1. Outline your project, timescales and exit clearly.

2. Share documents - ID, title, plans, costs, and leases.

3. Receive indicative terms and agree required leverage.

4. Valuation and diligence instructed after DIP approval.

5. Legal work progresses in parallel with lender underwriting.

6. Offer issued - review conditions, fees and drawdown schedule.

7. Sign, complete, and draw funds to purchase or start works.

8. Monitor milestones and prepare refinance or sale exit.

Weighing the upsides and trade-offs

Read this before you press go

Bridging is a precision tool, not a blunt instrument. Be conservative on timelines and costs, include contingency, and sense-check your end values with a surveyor who understands the office market in your region. If your exit relies on refinance, start that conversation early and model interest cover under less flattering rate scenarios. Where the exit is a sale, benchmark local absorption and build a marketing plan that matches your programme schedule.

Operational improvements mean lenders are faster, but only when the case is packaged properly. Keep your legal team aligned, respond quickly to additional information requests, and track conditions precedent to completion. A clean, well-organised file can save days - sometimes weeks - and that time can be worth more than the marginal difference in interest rate.

Alternatives you might consider

1. Term commercial mortgage - slower but cheaper for stabilised assets.

2. Development finance - for ground-up or heavy structural projects.

3. Mezzanine finance - supplemental capital to reduce equity outlay.

4. Asset-based lending - secured on receivables, plant or equipment.

5. Vendor finance or deferred consideration - negotiate with the seller.

Frequently asked questions

Q: How fast can I complete an office bridging loan? A: Well-prepared cases can complete in around 3 to 6 weeks. With all documents ready and aligned legals, some regulated cases have finished in roughly 10 working days.

Q: What monthly rate should I budget for? A: Rates vary by case, but average pricing has trended lower in 2025. Strong cases may see quoted ranges from about 0.64% to near 0.9% per month, plus fees.

Q: What exits do lenders prefer for offices? A: The majority still repay from sale, with significant volumes via buy-to-let remortgage for converted schemes and commercial refinance once income stabilises and covenants are met.

Q: Can I fund refurbishment costs as well as the purchase? A: Yes, many facilities include a works tranche. Drawdowns are typically staged against milestones, supported by monitoring surveyor reports and evidence of spend.

Q: Will impaired credit rule me out? A: Not necessarily. Asset quality and exit clarity often weigh more heavily than historic credit. Transparent disclosure and strong project fundamentals are important.

Q: Is regulated bridging relevant to office projects? A: It can be, particularly for office-to-residential or mixed-use schemes where you or family will occupy. Regulated status introduces FCA protections and specific requirements.

How Kandoo helps you move quickly

Kandoo is a UK-based retail finance broker that connects you with specialist bridging lenders across Great Britain. We package your case to lender standards, target competitive rates, and coordinate valuations and legals so you can complete swiftly. Share your project and exit plan - we will help you compare options and proceed with confidence.

Important information

This guide is general information, not advice. Bridging loans are secured on property and your asset may be at risk if you do not keep up repayments or your exit fails. Terms and eligibility vary by lender. Always seek independent legal and tax guidance before committing.