A seasoned property developer and MFB client with a portfolio of 50+ buy to let properties needed a £9 million bridging loan to complete the refurbishment of a £12.5 million townhouse. The project involved extensive structural work, including a basement excavation and a large extension. Find out how we secured the loan despite lender concerns.
At a glance:
- Large portfolio MFB client with extensive landlord and property development experience
- An ongoing refurbishment and extension project on a £12.5 million townhouse
- Refinance and a £9 million bridging loan needed to pay for the outstanding work on the property
The case:
A highly experienced property developer and landlord we’d worked with for many years contacted us mid-way through the heavy refurbishment of a townhouse property.
Our client had purchased the property with the aim of refurbishing it and selling it at a profit. He had already carried out an extensive refurbishment, basement excavation, and extension that increased the property’s footprint by approximately 40%. Despite all this, the property still needed work before listing for sale.
Our client needed to raise capital to pay for the outstanding work; however, the current lender wasn’t happy to release further funding.
The challenges:
The primary challenge we faced was the size of the case, specifically the large loan and the high-value property.
Lenders can have an issue if there is just one property in question at such a high value due to the risks involved. Our client planned to sell the property following the refurbishment, and our lender was concerned about its resale ability due to a lack of demand for properties at this price point from buyers. As a prime property, it was more at risk to market fluctuations, and lenders were concerned that our client wouldn’t be able to sell the property at the right price to repay the significant loan size.
With our expertise working on complex cases such as this, we were able to identify a specialist lender that would be able to support our client on the next step of the refurbishment process. By presenting our client’s plans for the property, we were able to arrange a refinance to a competitive bridging rate, with the sale of the property as the exit. With the full plans, the lender was confident and happy to proceed to offer.
The finance:
Property value: £12,500,000
Loan amount: £9,375,000
LTV: 75%
Term: 12 months
Bridging interest rate: 0.86% per calendar month*
*Rate correct as at July 2025
Next steps
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