Fast Re-Bridge to Complete Loft Conversion Before Sale

Our team recently assisted clients who found themselves in a challenging situation, needing to refinance an existing bridging loan while also securing additional funds for property improvements before a sale.

This case study demonstrates our ability to find creative solutions under significant time pressure.

The Scenario

Our clients had inherited a terraced property in London, and had initially taken out a bridging loan to carry out improvements before its sale for an estimated £580,000.

However:

• The renovation costs exceeded their initial estimates and had taken longer to complete – they were yet to complete the loft conversion, which would be a key development.
• They now only had two months to repay their original bridging loan and were not ready to put the house on the market.

The Challenge

The case presented several complex challenges:

• We only had two months to arrange new finance and repay the original lender.
• Many lenders are cautious about refinancing existing bridging loans (re-bridging).
• Loft conversions are considered as ‘heavy refurbishments’ by most lenders, which are more difficult to secure approval for compared to light refurb.
• Relatively high Loan-to-Value (LTV) ratio required

The Solution

Our team quickly assessed the situation and approached several lenders, including those specialising in re-bridge scenarios and property development.

After presenting the case, highlighting the property’s potential value increase and the client’s clear exit strategy, we managed to negotiate terms at a lower rate than offered by the client’s original broker whom they’d used for their first bridge.

Thanks to our extensive lender relationships and experience in complex cases, we were able to move quickly - we secured the loan within 6 weeks, leaving 2 weeks to spare before the original loan deadline.