Our clients were a married couple who owned a detached residential bungalow and were in the process of carrying out refurbishment works to enhance the property’s value.
Area: The New Forest
Capital Raised: £302k
Date: 2018
Our clients were a married couple who owned a detached residential bungalow and were in the process of carrying out refurbishment works to enhance the property’s value.
With professional backgrounds in plumbing and healthcare, the clients had a stable financial foundation and were focused on completing the refurbishment before preparing the property for sale.
The clients required additional funding to refinance their existing borrowing while also completing the remaining refurbishment works on the property.
Their objectives were:
The clients required a flexible refinance structure that would provide sufficient capital to complete the works while allowing time to market and sell the property effectively.
This case involved several important considerations that required careful structuring and efficient lender selection.
The transaction centred around refinancing an existing bridging facility while refurbishment works were still ongoing. In addition, the proposed exit strategy relied on the future sale of the property, meaning the facility needed to provide both flexibility and sufficient time for the sale process.
The funding requirement was also time-sensitive, while the structure relied on rolled-up interest to avoid placing additional monthly financial pressure on the clients during the refurbishment period.
The clients therefore required a lender comfortable with refinance scenarios, refurbishment projects, and sale-based exit strategies.
We arranged a tailored regulated bridging loan designed specifically to refinance the existing facility and release additional funds for the refurbishment works.
The funding solution included:
The structure allowed the clients to refinance the existing bridge loan while also securing the funding needed to finish the refurbishment and prepare the property for sale.
We carried out a detailed review of the clients’ existing borrowing, refurbishment plans, and overall exit strategy before structuring the bridging facility.
A suitable lender was sourced that could accommodate both the refinance element and the ongoing refurbishment works within a single short-term funding solution. The facility was then aligned carefully with the proposed property sale to ensure the clients had sufficient flexibility throughout the term.
Throughout the process, communication between all parties was managed proactively to ensure the transaction progressed efficiently and funding was delivered within the required timeframe.
This hands-on approach enabled the clients to continue their refurbishment project without disruption while maintaining a clear path toward sale.
The bridging loan completed successfully, enabling the clients to refinance the existing facility and complete the refurbishment works.
As a result, the clients were able to:
Conclusion:
This case highlights how bridging finance can provide a flexible and effective solution for clients needing to refinance existing borrowing while continuing refurbishment projects.
With the right lender relationships and strategic structuring, bridging finance can help clients complete property improvements while maintaining flexibility and control over the sale process.
