Using Bridging Finance to Refinance Existing Borrowing and Fund Ongoing Care Costs Ahead of Property Sale

Client Background

Our clients were based in London, with one applicant residing in full-time nursing care and the second applicant assisting with the management of their affairs.

The primary client had recently suffered a serious health event and had moved into long-term care, while retaining ownership of a refurbished residential property valued at approximately £2 million.

The property had undergone extensive refurbishment works, with only minor finishing items remaining before being fully marketed for sale.

The Scenario

The clients required funding to refinance existing borrowing while also covering substantial ongoing care costs.

Their objectives were to:

• Raise approximately £975,804
• Repay an existing bridging facility of approximately £795,000
• Release additional funds of approximately £180,000 to cover care costs over the next 12 months
• Structure the borrowing on a short-term basis
• Exit the facility through the future sale of the property

The clients required urgent funding to maintain financial stability while the property sale process progressed.

The Challenges

This case involved several important complexities that required the selection of a specialist lender and sensitive handling.

The transaction centred around refinancing an existing bridging facility while simultaneously releasing additional funds to cover ongoing care costs.

The case also involved significant health considerations, a high loan requirement, and a repayment strategy that relied entirely on the future sale of the property.

Traditional lenders were unsuitable due to the clients’ circumstances, the urgency of the funding requirement, and the non-income-based nature of the borrowing.

The Solution

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

The funding solution included:

• A net loan amount of approximately £975,804
• A 12-month term
• A loan-to-value of approximately 48%
• 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 clients to refinance their existing borrowing while ensuring sufficient liquidity to cover ongoing care expenses during the sale period.

Implementation Process

This case required a careful and highly responsive approach throughout the transaction.

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

A suitable lender was sourced that could accommodate regulated bridging in sensitive personal circumstances while also supporting a large loan requirement and time-sensitive refinance.

Throughout the process, communication between all parties was managed proactively and sensitively, including working closely with the client’s representatives to ensure the funding completed efficiently and without unnecessary delays.

The Outcome

The bridging loan completed successfully, enabling the clients to refinance the existing borrowing and secure funding for ongoing care costs.

As a result, the clients were able to:

• Repay the existing bridging facility in full
• Secure funds to cover ongoing care expenses
• Maintain financial stability during a difficult personal period
• Retain flexibility through rolled-up interest with no monthly repayments
• Proceed with a clear and manageable exit strategy via property sale