Our clients were two individuals based in Knowl Hill, Reading, who jointly owned a large residential property being converted into two semi-detached houses.
Area: Knowl Hill, Reading
Capital Raised: £475k
Date: 2019
Our clients were two individuals based in Knowl Hill, Reading, who jointly owned a large residential property being converted into two semi-detached houses.
One client was a self-employed builder with more than 40 years of experience, while the second client was a company director operating within the construction sector, with a combined annual income of approximately £54,000.
At the time of the application, the property was valued at approximately £1.15 million, with an anticipated gross development value of £550,000 per unit upon completion of the project.
The clients required funding to complete an ongoing development project while refinancing existing borrowing.
Their objectives were to:
The wider strategy was to complete the conversion works quickly in order to maximise the sale value of both properties.
This case involved several important complexities that required specialist lender selection and careful structuring.
The transaction centred around refinancing an expired bridging facility while simultaneously funding the completion of an ongoing development project.
The case also involved additional borrowing for business purposes, adverse credit considerations, and a time-sensitive construction programme. The repayment strategy relied entirely on the future sale of the completed properties.
Traditional lenders were unsuitable due to the development stage of the project, the expired facility, and the wider complexity of the case.
We arranged a tailored bridging loan designed specifically to refinance the existing debt and fund completion of the development works.
The funding solution included:
The structure enabled the clients to refinance the expired facility, complete the remaining works, and continue progressing toward the planned property sale exit strategy.
This case required a proactive and carefully structured approach throughout the transaction.
We carried out a detailed assessment of the clients’ development progress, funding requirements, and proposed exit strategy before structuring a bridging facility aligned to the completion of the conversion project.
A suitable lender was sourced that could accommodate the expired bridging facility, the ongoing development scenario, and the adverse credit background while also delivering funding within the required timeframe.
Throughout the process, communication between all parties was managed proactively to ensure the refinance completed efficiently and the development works could continue without unnecessary delays.
The bridging loan completed successfully, enabling the clients to refinance the expired facility and complete the development project.
As a result, the clients were able to:
Conclusion:
This case highlights how bridging finance can provide effective solutions for refinancing expired loans and supporting development completion where traditional lenders may be unable to accommodate complexity or timing requirements.
By focusing on asset value, development potential, and exit strategy, bridging lenders can help clients complete projects successfully while maintaining financial flexibility.
