Using Bridging Finance to Facilitate a Residential Purchase with a Sale Exit

Client Background

Our clients were a mother and daughter based in Calne, Wiltshire, who jointly owned a ground-floor flat alongside an additional first-floor flat held under the same title.

The ground floor property was valued at approximately £375,000, while the first-floor flat was valued at approximately £250,000, creating a strong combined asset position.

One client was a retired teacher, while the second worked part-time as a self-employed driving instructor, supporting her mother and assisting with the planned relocation.

The Scenario

The clients required funding to secure a new property purchase and relocate closer to family.

Their objectives were to:

• Raise approximately £300,000
• Purchase a four-bedroom semi-detached property in County Durham
• Cover the agreed purchase price of approximately £285,000 alongside associated costs
• Structure the borrowing on a short-term basis
• Exit the facility through the future sale of their existing property, which was about to be marketed

The purchase was highly time-sensitive due to strong interest from other buyers, requiring a fast and flexible funding solution in order to secure the property.

The Challenges

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

The transaction represented a chain-break scenario, where the clients needed to complete the purchase before selling their existing property. In addition, the clients had income constraints linked to retirement and part-time self-employed earnings.

The structure also involved multiple properties being used as security to strengthen the application, while the repayment strategy relied on the successful future sale of the existing assets.

Traditional mortgage products were unsuitable due to the urgency of the purchase and the affordability constraints involved.

The Solution

We arranged a tailored regulated bridging loan designed specifically to facilitate the purchase while allowing the clients time to sell their existing property.

The funding solution included:

• A net loan amount of approximately £300,000
• A 12-month term
• A loan-to-value of approximately 32.9%
• Rolled-up interest with no monthly repayments required
• First charge security across multiple properties
• Fees added to the loan to preserve liquidity

The selected lender provided the speed and flexibility required to complete a time-sensitive residential purchase.

The structure enabled the clients to secure their new home without delays linked to the sale of their existing property.

Implementation Process

This case required a responsive and carefully managed approach throughout the transaction.

We carried out a detailed assessment of the clients’ property assets, financial circumstances, and relocation plans before structuring a bridging facility aligned to the proposed property sale exit strategy.

A suitable lender was sourced that could accommodate retired applicants, part-time self-employed income, and the chain-break nature of the transaction while also moving quickly enough to secure the purchase.

Throughout the process, communication between all parties was managed proactively to ensure the funding completed efficiently and within the required timeframe.

The Outcome

The bridging loan completed successfully, enabling the clients to secure their new property and proceed with the relocation.

As a result, the clients were able to:

• Secure the new property purchase successfully
• Complete the purchase quickly despite competition from other buyers
• Avoid delays caused by the property chain
• Maintain flexibility through rolled-up interest with no monthly repayments
• Proceed with the sale of their existing property to repay the facility