Using Bridging Finance to Refinance Existing Borrowing and Complete Refurbishment Ahead of Sale

Client Background

Our client was based in Catford, London, and owned a semi-detached residential property valued at approximately £950,000.

The client was retired and had lived in the property for more than 30 years, with plans to sell the property following completion of refurbishment works.

At the time of the application, significant improvements had already been carried out, although final works still remained before the property could be marketed at full value.

The Scenario

The client required funding to refinance existing borrowing while also releasing additional capital to complete refurbishment works.

Their objectives were to:

• Raise approximately £354,673
• Repay an existing bridging facility of approximately £250,000
• Release additional funds of approximately £100,000 to complete refurbishment works
• Complete the remaining works within approximately 6–8 weeks
• Structure the borrowing on a short-term basis
• Exit the facility through the future sale of the property once refurbishment was complete

During the refurbishment process, the client intended to stay temporarily with family to allow the works to be completed efficiently.

The Challenges

This case involved several important complexities that required specialist lender selection and careful structuring.

The transaction centred around refinancing an existing bridging facility while simultaneously funding ongoing refurbishment works.

The client was retired with limited traditional income, while the existing loan expiry created significant time pressure around securing replacement funding.

Traditional lenders were unsuitable due to the condition of the property, the short-term nature of the funding requirement, and the urgency involved.

The Solution

We arranged a tailored regulated bridging loan designed specifically to refinance the existing borrowing and fund completion of the refurbishment works.

The funding solution included:

• A net loan amount of approximately £354,673
• A 12-month term
• A loan-to-value of approximately 37.33%
• Rolled-up interest with no monthly repayments required
• First charge security against the property
• Fees added to the loan to maximise available capital

The structure enabled the client to refinance the existing borrowing while ensuring sufficient funds were available to complete the refurbishment and maximise the property’s sale value.

Implementation Process

This case required a structured and time-sensitive approach throughout the transaction.

We carried out a detailed assessment of the client’s refinance requirement, refurbishment plans, and proposed exit strategy before structuring a bridging facility aligned to the future property sale.

A suitable lender was sourced that could accommodate refurbishment works, retired applicants, and the urgency associated with the expiring facility while also providing sufficient flexibility for the completion of the project.

Throughout the process, communication between all parties was managed proactively to ensure the refinance completed efficiently and the refurbishment works could continue without interruption.

The Outcome

The bridging loan completed successfully, enabling the client to refinance the existing borrowing and complete the outstanding refurbishment works.

As a result, the client was able to:

• Repay the existing bridging facility before expiry
• Complete all remaining refurbishment works
• Prepare the property for sale at full market value
• Maintain flexibility through rolled-up interest with no monthly repayments
• Proceed with a clear and manageable exit strategy via property sale