Bridging exit checklist

Why the exit matters

A bridge is short-term money, so every lender's first question is how it gets repaid. A credible exit, backed by evidence, gets a case through underwriting. A vague one is one of the most common reasons a case stalls late. Run through this list before you send the case.

Every exit

• The exit is named and specificSale, refinance onto a term mortgage, or sale or refinance of finished units. Not "one or the other".
• The term fits the plan, with room to spareAllow for works, marketing, legals and a buffer. If the plan needs eleven months, a twelve-month term is tight.
• Interest is covered for the full termCheck whether interest is retained, serviced monthly or rolled up, and that the numbers still work if the exit takes longer.
• You know what happens if it slipsAsk about extension fees and default rates before the client signs, not when the term is running out.
• The evidence is in the packLenders want to see the exit, not just read about it.

Exit by sale

• The sale price is backed by comparablesRecent sales of similar properties nearby, not the asking prices.
• The time to sell is realisticValuers look at sales velocity: how long this kind of property takes to sell in this area.
• There is a margin if the price dropsCheck the loan is still repaid if the property sells for less than hoped.
• An agent's appraisal is availableA written appraisal from a local agent supports the figure.

Exit by refinance

• The property will be mortgageableHabitable, with a kitchen and bathroom, and any works finished before the refinance.
• The rent covers the mortgageFor a buy-to-let exit, check the expected rent against the term lender's rental cover test.
• The borrower fits the term lenderCredit history, income, experience and ownership structure, whether personal or limited company.
• A term lender or agreement in principle is lined upEven an indicative view from the refinance lender strengthens the case.

Exit for development

• The build programme is realisticAllow for planning conditions, contractor availability and weather.
• The GDV is supportedComparable sales for the finished units, ideally with an agent's view.
• There is a plan for unsold unitsA development exit loan or a refinance option if sales are slower than planned.

This checklist is a general guide for brokers. Each lender has its own requirements, and the final decision rests with the lender's underwriting.