Our clients were a married couple based in Brentwood, Essex, who owned a four-bedroom detached bungalow set within approximately one acre of land and valued at around £1.475 million.
Area: Brentwood, Essex
Capital Raised: £565k
Date: 2019
Our clients were a married couple based in Brentwood, Essex, who owned a four-bedroom detached bungalow set within approximately one acre of land and valued at around £1.475 million.
They were experienced property developers with a track record of completing multiple property conversion projects, typically valued between £200,000 and £250,000.
At the time of the application, their current property was already on the market, with significant refurbishment works completed and signed off by both the council and a structural engineer.
The clients required funding to complete the final stages of their latest project and stabilise their wider financial position.
Their objectives were to:
The funding was intended to allow the clients to complete the final stages of refurbishment and maximise the property’s value ahead of sale.
This case involved several complexities that required careful structuring and the selection of a specialist lender.
The transaction centred around incomplete development works alongside the need to refinance existing mortgage debt and secured loans. In addition, the clients had recently missed mortgage payments due to cost overruns during the refurbishment process.
The case was also highly time-sensitive due to the ongoing property sale process, while the proposed repayment strategy relied entirely on the future sale of the completed property.
Traditional mortgage options were unsuitable due to recent arrears, the short-term nature of the funding requirement, and the need for fast, flexible lending.
We arranged a tailored, regulated bridging loan specifically to refinance the existing liabilities and fund the completion of the remaining works.
The funding solution included:
The lender selected offered the flexibility required to accommodate adverse credit circumstances and a complex refinance structure.
The facility enabled the clients to consolidate existing debts while also funding the final refurbishment works needed to maximise the property’s sale potential.
This case required a structured and pragmatic approach throughout the transaction.
We carried out a detailed assessment of the clients’ development experience, current financial position, and remaining project requirements before structuring a bridging facility aligned to both the refinance and refurbishment objectives.
A suitable lender was sourced that could accommodate the recent missed payments alongside the ongoing development scenario. The facility was then aligned carefully with the proposed property sale exit strategy to ensure 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.
The bridging loan completed successfully, enabling the clients to refinance their existing debts and complete the final 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 complete projects and refinance debt simultaneously, particularly where traditional lenders are restricted by recent credit issues.
By focusing on asset value, development experience, and exit strategy, bridging lenders can help clients maximise property value while stabilising their wider financial position.
