Our client was an experienced property developer and estate agent who had recently completed a residential development project consisting of four flats, including two three-bedroom units and two two-bedroom units.
Area: London
Capital Raised: £450k
Date: 2018
Our client was an experienced property developer and estate agent who had recently completed a residential development project consisting of four flats, including two three-bedroom units and two two-bedroom units.
The completed development had a combined value of approximately £3.17 million, providing the client with a strong asset position and significant available equity for future investment opportunities.
The client required funding to refinance existing borrowing secured against the development while also releasing additional capital for a new business venture.
His objectives were:
The client required a structure that would unlock equity efficiently while maintaining flexibility around the planned sale of the properties.
This case involved several complexities that required specialist lender selection and careful structuring.
The transaction centred around second charge lending, with existing borrowing already secured against the development. In addition, the proposed exit strategy relied on the future sale of the completed units, meaning the facility needed to align closely with the client’s sales timeline.
The funding was also intended partly for business purposes, while the case itself was time-sensitive and required a lender capable of moving quickly.
The client therefore required a bridging lender comfortable with second charge security, development-based exits, and business-use capital raising.
We arranged a tailored regulated bridging loan designed specifically to refinance the existing borrowing and release additional capital from the completed development.
The funding solution included:
The structure enabled the client to refinance existing borrowing while also securing the additional capital required to support future business activity.
We carried out a detailed review of the development project, existing borrowing position, and proposed exit strategy before structuring the bridging facility.
A suitable lender was sourced that could accommodate second charge security alongside the planned property sale exit strategy. The facility was then aligned carefully with the client’s wider business objectives to ensure sufficient flexibility throughout the term.
Given the time-sensitive nature of the transaction, communication between all parties was managed proactively to ensure the refinance completed smoothly and within the required timeframe.
This structured approach enabled the client to unlock additional equity efficiently while maintaining control over the development sales process.
The bridging loan completed successfully, enabling the client to refinance the existing borrowing and release additional capital for business use.
As a result, the client was able to:
Conclusion:
This case highlights how bridging finance can provide a flexible and effective solution for developers looking to unlock equity from completed projects while pursuing further investment opportunities.
With the right lender relationships and strategic structuring, bridging finance can help clients maximise the value of development assets while maintaining flexibility around future business growth.
