Our clients were a retired couple based in Drumoak, Banchory, Aberdeenshire, who owned a detached residential property valued at approximately £650,000.
Area: Drumoak, Banchory, Aberdeenshire
Capital Raised: £400k
Date: 2019
Our clients were a retired couple based in Drumoak, Banchory, Aberdeenshire, who owned a detached residential property valued at approximately £650,000.
Their income was primarily derived from pensions, and the property was subject to an existing equity release mortgage balance of approximately £234,000.
The clients held substantial equity within the property and were seeking to unlock capital to support a new business investment opportunity.
The clients required funding to refinance their existing borrowing and release additional capital for investment purposes.
Their objectives were to:
The clients intended to repay the bridging facility within approximately 12 months, making short-term finance the most appropriate solution for their circumstances.
This case involved several important complexities that required specialist lender selection and careful structuring.
The transaction centred on refinancing an existing equity release mortgage, which limited the clients’ ability to access additional borrowing through traditional lending channels.
The clients were also retired with limited traditional income, while the funding itself was intended in part for business investment. The repayment strategy relied on the future sale of the property and/or returns from the investment.
Traditional lenders were unsuitable due to the combination of equity release restrictions, income profile, and the business-purpose element of the transaction.
We arranged a tailored regulated bridging loan designed specifically to redeem the existing equity release mortgage and release additional investment capital.
The funding solution included:
The structure enabled the clients to unlock substantial equity tied up within the property while maintaining flexibility around their future exit strategy.
This case required a strategic and carefully tailored approach throughout the transaction.
We carried out a detailed assessment of the clients’ existing mortgage restrictions, wider financial position, and investment objectives before structuring a bridging facility aligned to the proposed exit strategy.
A suitable lender was sourced that could accommodate retired applicants, the redemption of an equity release mortgage, and the business-purpose use of funds while still delivering the flexibility required for a short-term solution.
Throughout the process, communication between all parties was managed proactively to ensure the refinance completed efficiently and within the required timeframe.
The bridging loan completed successfully, enabling the clients to refinance the existing equity release mortgage and release substantial capital for investment purposes.
As a result, the clients were able to:
Conclusion:
This case highlights how bridging finance can provide effective solutions for unlocking equity from properties subject to restrictive lending structures where traditional lenders may be unable to assist.
By focusing on asset value and exit strategy, bridging lenders can help clients access capital efficiently to support both refinancing and new investment opportunities.
