Large Bridging Loan On Sussex Property While Waiting For Planning

The Scenario

Our client came to us wanting to purchase a £1.5m residential property in Sussex, but their money was tied up in another property that wasn’t yet ready to sell.

However, the property they were selling to fund their purchase wasn’t going to complete any time soon.

Not only were they awaiting approval of planning permission for the property, but it was also undergoing some minor refurbishments that needed to complete before it went on the market.

Selling their property before these two issues were resolved was not an option, as they’d lose a significant portion of the property’s potential value. However, they also couldn’t delay their purchase of the new Sussex home or they’d lose it to another buyer.

To top it off, their existing residence was also sold subject to contract to provide the deposit money for their new purchase, adding extra pressure to the deal.

The Solution

We recommended a bridging finance solution to raise the £1.5m, secured against the property awaiting planning and refurbishment. This released the funds for the clients to complete their new purchase quickly and secure their new residential home.

It also provided the flexibility for their repayments to come from the sale of their existing property after the planning permission was granted, with the shortfall coming from a minor refinance on the purchase property.

The lender was able to work to the timescales required, and communication between all parties was quick and efficient. We ensured that all the key events married up, and were able to complete the deal for our client in four weeks.

The bridging finance product we recommended was the best solution for our client for three critical reasons:

1. They could raise the large sum of capital as quickly as needed.
   
   
2. They could repay the loan at any point within the term length without incurring additional penalties – this flexibility was essential due to the speculative nature of when the planning permission would be granted and the property could be sold.
   
   
3. The bridging lender we chose was comfortable with the planning changes on the existing property – the planning effectively changed the use of the property, which is something that not all lenders will facilitate.