Bridging Finance to Support Divorce Settlement and Property Relocation

Client Background

Our clients were a separated couple who jointly owned a substantial residential property in Kent. Following a significant change in personal circumstances, one of the clients needed to relocate quickly and purchase a new home in Wales.

Although the existing property remained jointly owned, both parties were cooperative and committed to finding a financial solution that would allow the transition to take place as smoothly as possible.

 

The Scenario

The objective was to raise capital against the existing property in order to facilitate the purchase of a new home.

The clients were looking to:

• Facilitate the purchase of a property in Wales
• Allow one party to relocate quickly following the separation
• Retain the existing property temporarily until it could be sold
• Secure a short-term funding solution with a clear exit strategy

With the purchase timeline already in motion, the clients required a flexible funding solution that could be arranged efficiently and without unnecessary complications.

The Challenge

This case involved a number of complexities that required careful handling and clear communication throughout the process.

The transaction centred around a separation scenario, meaning cooperation between both parties was essential in order to progress the application successfully. In addition, the clients were working against a time-sensitive property purchase while managing an existing mortgage balance of approximately £217,856.

The structure also required additional borrowing to fund the purchase and associated costs, creating a more complex refinancing and capital-raising arrangement.

Without a suitable bridging solution, the clients risked delays to the purchase and increased pressure during an already challenging personal situation.

The Solution

We arranged a tailored regulated bridging loan secured against the existing jointly owned property.

The funding solution included:

• A net loan amount of approximately £435,000
• A competitive loan-to-value of approximately 43.6%
• A 12-month term
• Rolled-up interest with no monthly repayments required
• A fixed interest rate to provide cost certainty
• Flexible repayment upon the eventual sale of the property

The agreed exit strategy was repayment through the sale of the existing home, with refinancing available as a contingency option if required.

 

Implementation Process

Given the personal circumstances involved, the case required sensitive handling alongside efficient case management.

We coordinated closely with both parties throughout the transaction while assessing the available equity and structuring the borrowing appropriately. A suitable lender was then sourced to support the clients’ requirements and the non-standard nature of the case.

The facility was aligned carefully with the planned exit strategy, while the process was managed proactively to ensure the property purchase could proceed within the required timescales.

Clear communication between all parties helped ensure the transaction progressed smoothly from application through to completion.

The Outcome

The bridging loan completed successfully, allowing the client to purchase a new home in Wales and relocate without delay.

As a result, the clients were able to:

• Complete the property purchase successfully
• Relocate smoothly during a major life transition
• Retain the existing property until an appropriate sale could be achieved
• Reduce financial pressure during the separation process