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Bridge Loan Term Sheet Template for England and Wales

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Key Requirements PROMPT example:

Bridge Loan Term Sheet Template

I need a Bridge Loan Term Sheet Template for a £5 million real estate development bridge facility with a 12-month term, targeting completion by March 2025, with security over the development property and personal guarantees from the company directors.

Document background
The Bridge Loan Term Sheet Template is essential for situations requiring rapid, interim financing before permanent funding becomes available. Used extensively in real estate, corporate acquisitions, and project financing under English and Welsh law, this document captures critical commercial terms, conditions, and requirements for bridge financing. It serves as a roadmap for legal documentation and typically includes facility details, pricing, security arrangements, and key conditions. The template is designed to expedite negotiations while ensuring all crucial elements of the bridge facility are properly addressed.
Suggested Sections

1. Parties: Identification of lender and borrower with full legal names and registration details

2. Background: Purpose of the bridge loan, context and transaction overview

3. Facility Details: Key terms including amount, purpose, availability period and facility type

4. Interest and Fees: Interest rate, calculation method, arrangement fees, commitment fees and other charges

5. Repayment Terms: Maturity date, repayment schedule, prepayment provisions and exit mechanisms

6. Security: Details of collateral, guarantees and security arrangements

Optional Sections

1. Conditions Precedent: Pre-drawdown conditions and required documentation, used for complex transactions

2. Covenants: Financial and operational commitments, typically used for larger facilities or higher-risk borrowers

3. Events of Default: Circumstances triggering default and acceleration, used for higher-risk loans or sophisticated transactions

4. Representations and Warranties: Borrower statements and assurances, used for sophisticated borrowers or complex transactions

Suggested Schedules

1. Form of Drawdown Notice: Standard template for requesting loan disbursement

2. Security Details Schedule: Comprehensive description of security arrangements and asset details

3. Fee Schedule: Detailed breakdown of all applicable fees, charges and their calculation methods

4. Conditions Precedent Documents: Checklist of required documentation and conditions to be satisfied before drawdown

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºìÐÓÖ±²¥ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





































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Industries

Financial Services and Markets Act 2000: Primary legislation that regulates financial services and markets in the UK, establishing the regulatory framework for lending activities

Consumer Credit Act 1974: Governs consumer credit agreements and provides consumer protection measures, relevant if the borrower could potentially be a consumer rather than a business

Companies Act 2006: Regulates corporate borrower's capacity to borrow and establishes directors' duties and corporate authority requirements

FCA/PRA Regulations: Financial Conduct Authority and Prudential Regulation Authority requirements, particularly relevant if the lender is a regulated entity

FSMA Regulated Activities Order 2001: Defines and specifies which lending activities are regulated under UK law

Common Law of Contract: Establishes principles of contract formation, interpretation rules, and remedies for breach under English law

Unfair Contract Terms Act 1977: Governs the reasonableness of contractual terms and limitations of liability in commercial contracts

Money Laundering Regulations 2017: Sets out KYC requirements and due diligence obligations for financial transactions

UK Sanctions Regulations: Establishes compliance requirements with sanctions regime and restricted parties screening

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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