Our clients were a retired couple with long-standing property ownership in Surrey and a strong overall asset position. Their portfolio included both their primary residence and a recently completed development property.
Area: Cranleigh, Surrey
Capital Raised: £595k
Date: 2017
Our clients were a retired couple with long-standing property ownership in Cranleigh, Surrey and a strong overall asset position. Their portfolio included both their primary residence and a recently completed development property.
The clients had previously undertaken a development project within the grounds of their existing home, constructing a new three-bedroom detached property funded through a short-term development bridging loan.
The clients needed to refinance an expired development bridging facility which had moved onto a significantly higher default interest rate.
Their objectives were:
Following a failed property sale, the clients required a fast and flexible refinance solution that would relieve immediate financial pressure and provide time to achieve a successful sale at the right value.
This case involved several urgent challenges that required swift action and careful lender selection.
The existing bridge loan had already expired, resulting in significantly increased monthly costs and placing the clients under mounting financial pressure. In addition, the anticipated property sale had not completed as expected, leaving the clients reliant on a refinance solution to avoid further default exposure.
The transaction also involved a dual-security structure across two properties, adding complexity to the underwriting process.
Given the time-sensitive nature of the situation, the clients required a lender capable of refinancing quickly while accommodating the specialist structure involved.
We arranged a tailored regulated bridging loan designed specifically to refinance the existing facility and stabilise the clients’ financial position.
The funding solution included:
The agreed exit strategy was through the sale of either the development property or the existing residence, providing the clients with greater flexibility and additional time to secure the right outcome.
Given the urgency of the refinance, proactive case management and efficient structuring were essential throughout the process.
We carried out a full assessment of the clients’ overall asset position before structuring a low loan-to-value solution secured across both properties. A suitable lender was then sourced that could accommodate the expired bridge scenario while delivering a competitive refinance structure.
Throughout the transaction, we managed communication between all parties closely to ensure the refinance progressed smoothly and completed within the required timeframe.
This hands-on approach enabled the clients to reduce immediate financial pressure while regaining control over the property sale process.
The bridging loan completed successfully, enabling the clients to refinance the expired development facility and reduce their ongoing costs.
As a result, the clients were able to:
Conclusion:
This case highlights how bridging finance can provide an effective solution for refinancing expired development loans and reducing the financial strain caused by high default costs.
With the right lender relationships and strategic structuring, bridging finance can help clients regain flexibility and control while working toward a successful property sale.
