Refinancing an Existing Bridge and Raising Capital for Business Investment

Client Background

Our clients were a married couple and long-term homeowners with a substantial residential property valued at approximately £1.25 million.

Having owned the property for many years, they had built significant equity and were looking to leverage their existing asset position to support wider financial and business objectives.

The Scenario

The clients needed to refinance an existing bridging loan while also raising additional capital to support their business activities.

Their objectives were:

• Repay an existing bridging loan of approximately £200,000
• Raise additional business capital of around £50,000
• Consolidate all borrowing into a single facility
• Secure a flexible short-term funding solution

The clients required a structured refinance arrangement that would simplify their borrowing while also releasing additional liquidity for business investment.

The Challenge

This case involved several considerations that required careful structuring and lender selection.

The transaction centred around refinancing an existing bridge facility while simultaneously raising additional funds for business purposes. The clients also required a short-term lending structure that would provide flexibility and certainty around repayment costs.

In addition, the proposed exit strategy relied on the future sale of the property, meaning the facility needed to align closely with the clients’ longer-term plans.

The clients therefore required a lender capable of consolidating the borrowing efficiently while maintaining flexibility within the structure.

The Solution

We arranged a tailored regulated bridging loan designed specifically to refinance the existing borrowing and release additional capital for business investment.

The funding solution included:

• A net loan amount of approximately £250,000
• A competitive loan-to-value of approximately 20%
• A 12-month term
• Rolled-up interest with no monthly repayments required
• A fixed interest rate to provide cost certainty
• Consolidation of the borrowing into one facility

The structure allowed the clients to simplify their finances while also accessing the additional funds required for their business objectives.

Implementation Process

We carried out a detailed review of the clients’ existing borrowing, available equity, and proposed business funding requirements before structuring the bridging facility.

A suitable lender was sourced that could accommodate both the refinance element and the additional capital raise within a single short-term solution. The facility was then aligned carefully with the clients’ proposed exit strategy to ensure flexibility throughout the term.

Throughout the process, communication between all parties was managed proactively to ensure the transaction progressed efficiently from application through to completion.

This structured approach enabled the clients to refinance their existing loan smoothly while securing the additional business capital required.

The Outcome

The bridging loan completed successfully, enabling the clients to refinance the existing bridge facility and raise additional capital for business use.

As a result, the clients were able to:

• Repay the existing bridging loan successfully
• Access additional capital for business investment
• Simplify their borrowing into one structured facility
• Move forward with a clear and manageable exit strategy