Using Bridging Finance to Release Capital for Business Investment While Downsizing

Client Background

Our clients were a married couple based in Milton, Portsmouth, who owned a residential property valued at approximately £1.3 million with no existing mortgage.

One client operated a long-established retail business that had been trading successfully for many years but had recently experienced cash-flow pressures due to broader market conditions.

The clients were also planning to downsize to a smaller property, partly due to mobility and lifestyle considerations.

The Scenario

The clients required funding to support both their business and personal property plans.

Their objectives were to:

• Raise approximately £300,000
• Inject funds into the business to support cash flow and ongoing operations
• Downsize to a smaller residential property
• Structure the borrowing on a short-term basis
• Exit the facility through the future sale of their current property, which had already been placed on the market

The clients were comfortable using short-term finance while awaiting the sale of their home, allowing them to move forward with both business and lifestyle plans.

The Challenges

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

The transaction combined both business-purpose funding and residential property planning within a single facility, while the repayment strategy relied entirely on the future sale of the property.

The clients also had limited traditional income and wider personal circumstances linked to health and mobility considerations.

Traditional lenders were unsuitable due to the mixed-purpose nature of the borrowing and the complexity of the overall circumstances.

The Solution

We arranged a tailored regulated bridging loan designed specifically to release equity quickly while supporting both the business and downsizing plans.

The funding solution included:

• A net loan amount of approximately £300,000
• A 12-month term
• A loan-to-value of approximately 23%
• Rolled-up interest with no monthly repayments required
• First charge security against the property
• Fees added to the loan to preserve liquidity

The structure enabled the clients to unlock substantial equity from their property without entering into long-term commitments while their home sale progressed.

Implementation Process

This case required a strategic and sensitive approach throughout the transaction.

We carried out a detailed assessment of the clients’ business requirements, property strategy, and wider personal circumstances before structuring a bridging facility aligned to the proposed property sale exit.

A suitable lender was sourced to accommodate both business-purpose borrowing and the residential downsizing strategy, while also delivering funding within the required timeframe.

Throughout the process, communication among all parties was managed proactively to ensure the funding was completed efficiently and to support the clients’ wider financial and personal objectives.

The Outcome

The bridging loan completed successfully, enabling the clients to support their business while progressing their downsizing plans.

As a result, the clients were able to:

• Inject capital into the business to support operations
• Unlock equity from their home efficiently
• Proceed with plans to downsize to a more suitable property
• Maintain flexibility through rolled-up interest with no monthly repayments
• Execute a clear exit strategy via property sale