AREA: Central London
AMOUNT RAISED: £475,000
PRODUCT USED: Semi-Commercial bridging loan
A property investor approached us with a pressing deadline – their existing bridging loan was set to expire in just 10 days. They needed to refinance £475,000 against an investment property to avoid substantial penalty fees. The situation required immediate action and specialist knowledge to resolve.
Client Scenario
Our client, a commercial property developer with assets across London and the Home Counties, had originally taken out a 12-month bridging loan to acquire and renovate a mixed-use property in Central London. Their exit strategy had been to refinance onto a semi-commercial mortgage once renovations were complete.
However, despite the renovations finishing on schedule, their commercial mortgage application was experiencing unexpected delays due to the lender requesting additional documentation. With less than two weeks until their existing bridge expired, the client faced significant extension charges and potentially damaging their relationship with their current lender.
Funding Solution
After a detailed consultation, we identified that the recently renovated mixed-use property itself offered the best security for a refinance bridging loan. The property, which consisted of a ground-floor retail unit and two residential apartments above, had substantially increased in value following the renovations.
We then approached several specialist lenders from our network who specialise in semi-commercial short-term finance and can operate on accelerated timelines. Within three days, we secured competitive terms for a £475,000 loan secured against the investment property.
An expedited valuation confirmed our expectations, showing a significant uplift in the property’s worth.
We worked closely with the client’s solicitors to ensure all necessary documentation was prepared promptly, and we maintained daily contact with the lender to overcome any potential obstacles before they could cause delays.
Final Outcome
The new bridging loan completed just two days before the existing loan was due to expire, enabling the client to repay their original bridge with no late penalties. The new 12-month facility provided ample time for the semi-commercial mortgage application to progress at a normal pace.
The loan was structured with an initial 6-month term with a 6-month extension option, giving the client flexibility while keeping overall costs down. The client was able to continue receiving rental income from both the retail unit and residential apartments throughout this period, helping to service the loan costs.
This case illustrates how specialist finance knowledge and access to the right lenders can turn a potentially stressful situation into a manageable solution. By understanding the complexities of commercial property lending and the specific requirements of mixed-use bridging loans, we delivered a bespoke financial package that protected our client’s substantial investment and provided them with the breathing space they needed.
