Our clients were a married couple based in Seer Green, Buckinghamshire, who were experienced property developers and interior designers operating through their business.
Area: Seer Green, Buckinghamshire
Capital Raised: £340k
Date: 2019
Our clients were a married couple based in Seer Green, Buckinghamshire, who were experienced property developers and interior designers operating through their business.
They had recently completed a residential development project that was treated as an investment and development asset rather than as their primary residence.
The completed development property had an estimated value of approximately £1.55 million, with an existing mortgage balance of approximately £598,000 already secured against it.
The clients required funding to exit an existing development finance facility and complete the final outstanding costs associated with the project.
Their objectives were to:
The funding was required urgently as the existing development facility had reached the end of its term, while additional funds were still needed to complete outstanding project costs.
This case involved several important complexities that required swift action and the selection of a specialist lender.
The transaction centred around refinancing an expired development finance facility while simultaneously covering additional professional costs required to finalise the project. The structure also involved second charge lending secured against a development property.
The project had also experienced delays due to party wall agreement issues, increasing the urgency around securing further funding and bringing the property to market.
Traditional mortgage products were unsuitable due to the short-term nature of the requirement and the need to refinance an expired development facility quickly and efficiently.
We arranged a tailored second charge bridging loan designed specifically to refinance the existing development facility and fund the remaining project costs.
The funding solution included:
The selected lender provided the speed and flexibility required to efficiently refinance the expired development facility.
The structure enabled the clients to clear the previous facility while ensuring the remaining project costs could be completed ahead of sale.
This case required a responsive and development-focused approach throughout the transaction.
We carried out a detailed assessment of the clients’ development experience, current project position, and overall exit strategy before structuring a bridging facility aligned to the final stages of the development lifecycle.
A suitable lender was sourced to accommodate both the second-charge structure and the complexities associated with an expired development finance facility. The facility was then aligned carefully with the planned property sale to ensure sufficient flexibility throughout the term.
Throughout the process, communication between all parties was managed proactively to ensure the funding was completed quickly and without further delays to the project.
The bridging loan completed successfully, enabling the clients to refinance the development facility and complete the remaining stages of the project.
As a result, the clients were able to:
Conclusion:
This case highlights how bridging finance can provide effective solutions for developers needing to exit development finance and bridge the gap through to property sale.
By focusing on asset value, development experience, and exit strategy, bridging lenders can help clients maintain momentum and realise maximum value from completed development projects.
