Large Bridging Loan For Grade II Listed London Property

The London property market is notoriously competitive. So how can you set yourself apart from cash buyers and opportunistic property investors? The ability to act quickly can make all the difference.

Our team recently assisted clients in purchasing their ideal London retirement property while simultaneously managing the sale of their existing home, all while competing against other hungry bidders.

The Scenario

Our clients were looking to downsize and retire, having found their perfect property just outside London. However, they faced significant time pressure due to high interest from other potential buyers.

• The property was a Grade II listed, detached 3-bedroom house
• With a purchase price of £1.05 million
• They needed to sell their Grade II listed, detached 7-bedroom house (valued at £2.85m with a £410,000 outstanding mortgage) to fund the purchase
• And with the sale not at all likely to complete in time, they were looking to use a bridging loan to bridge the gap in funding and secure the property

The main challenges here were:

• Tight timeframe: Completion was required within 4-6 weeks of offer acceptance
• Cash buyer requirement: Multiple interested parties necessitated a cash purchase (or the equivalent through a bridging loan)
• Listed properties: Both the purchase and sale properties were Grade II listed, adding complexity
• High-value transaction: The substantial loan amount required would make certain lenders more cautious
• And second charge consent would be needed for the existing property to secure a bridging loan against it while it already held an outstanding mortgage

The Solution

We approached three lenders to ensure the best balance of speed and rate, and compared their propositions with the client so they could make an informed and rounded decision.

Upon choosing a lender, we leveraged their vendor-provided legal searches to expedite the process – something that not all banks provide and was factored into our selection process.

We also knew this lender could conduct an online valuation for the purchase property despite its high value (over £1m), getting around more potential logistical delays in the form of an in-person valuation.

In fact, the case completed with just 2 days to spare before the vendor's deadline, showing that without bridging finance – and without the help of a dedicated and experienced broker – this property would likely have slipped away.

While the primary value of our service is often the general advice we can provide during the process, the negotiation of lower rates, or the handling of the paperwork, sometimes the speed and efficiency of our work trumps all – particularly when lifelong future homes are hanging in the balance.

The difference between securing and missing out on a property such as this can literally be life-changing, and this is where a best-in-class bridging service is so important.