Our clients were a married couple based in Middlesex, who jointly owned a five-bedroom mid-terrace property valued at approximately £525,000.
Area: Middlesex
Capital Raised: £295k
Date: 2018
Our clients were a married couple based in Middlesex, who jointly owned a five-bedroom mid-terrace property valued at approximately £525,000.
They had owned the property for more than 10 years and had an existing mortgage balance of approximately £200,000. One applicant was self-employed and worked as a care assistant while the overall household income remained relatively modest.
The clients therefore required a flexible funding solution that would allow them to move forward with a new property purchase while managing their existing commitments.
The clients required funding to purchase a new property while awaiting the sale of their existing home.
Their objectives were:
The structure was intended to allow the clients to complete their onward purchase without delay due to the sale of their existing home.
This case involved several important considerations that required careful structuring and efficient lender selection.
The transaction centred around refinancing an existing mortgage while simultaneously supporting an onward property purchase. The case also represented a chain-break scenario, where the clients needed to buy before completing the sale of their current property.
In addition, the clients had a relatively modest income profile, which limited their access to traditional mortgage products. The transaction was also time-sensitive and involved a joint purchase arrangement with a family member.
The clients therefore required a lender capable of delivering a flexible short-term solution structured around the property sale exit strategy.
We arranged a tailored regulated bridging loan designed specifically to refinance the existing mortgage and provide the capital required for the onward purchase.
The funding solution included:
The selected lender provided the flexibility required to support the chain-break scenario and the clients’ overall circumstances.
Given the time-sensitive nature of the transaction, proactive management and efficient communication were essential throughout the process.
We carried out a detailed assessment of the clients’ financial position, property assets, and proposed exit strategy before structuring a bridging facility that refinanced the existing mortgage and enabled the onward purchase.
A suitable lender was sourced that could accommodate the chain-break structure and provide sufficient flexibility around the property sale exit strategy. Throughout the transaction, communication among all parties was closely managed to ensure the funding progressed smoothly and within the required timeframe.
This hands-on approach enabled the clients to proceed with their purchase confidently while avoiding delays linked to the sale of their current property.
The bridging loan completed successfully, enabling the clients to refinance their existing mortgage and complete their onward property purchase.
As a result, the clients were able to:
Conclusion:
This case highlights how bridging finance can provide an effective solution for clients looking to break a property chain and complete a purchase before selling their existing home.
By focusing on asset value and exit strategy rather than traditional affordability alone, bridging lenders can provide flexible funding solutions for time-sensitive property transactions.
