Rebridge of bridging loan not meeting exit deadline

Approaching the end of your bridging finance loan term can be extremely stressful if you haven’t managed to execute your exit strategy. Don’t panic: we’re usually able to arrange re-bridging for you, quickly and affordably.

The Scenario

Our client had come to us for a minimal £50K bridging loan to refurbish her mortgage-free older-style 5-bedroom detached house before selling it. The funds were also to pay for basic building works on an extension and renovations on the flat above a pub she owns that she was intending to move into.

Twelve months later, the house had failed to find a buyer, and living in a partly-renovated flat had lost its appeal.

She was looking for a re-bridge to give herself time to find a buyer for the house, and sufficient additional funding to pay for the pub-apartment to be completed.

The Solution

The 5-bed house now has a new bathroom and kitchen and new tiling and carpets throughout, including in its “granny annexe”. Offers had been made, but for various reasons they had fallen through.

With a valuation of £225K the feeling was not that the property was overpriced but that it just needed more time to find a buyer to recoup its value.

Meanwhile, in the flat over the pub the required works included building the extension, a loft conversion, fitting a new kitchen and bathroom and decoration throughout. An additional £50K of funding would allow her to get it completed.

Going to a new lender for a larger loan amount allowed us to access an offer that hadn’t previously been available, and the client’s loan costs were reduced from 0.54% to 0.49%.

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