£5.2m Bridging Loan Against £18m Holiday Let in Cotswolds

• Client: Owner of a high-value Cotswolds country residence
• Property: Country residence valued at circa £18 million
• Refurbishment: Approximately £3 million of works remaining
• Purpose: Refinance existing borrowing and fund completion of the refurbishment
• Structure: Interest rolled into the facility with no early repayment charges

Enness Global was approached by a client who owned a high-value country residence in the Cotswolds, valued at approximately £18 million. The property had undergone significant refurbishment, with around £3 million of works still required to complete the project to a luxury standard. Once completed, the intention was to operate the residence as a premium short-stay hospitality asset.

The client required a refinancing solution that would repay the existing borrowing while releasing additional capital to fund the remaining refurbishment. As the property was not yet generating income, a conventional mortgage structure involving monthly interest payments would have placed unnecessary pressure on cash flow during the works. The facility therefore needed to provide sufficient flexibility to fund the project without requiring ongoing monthly servicing.

Enness Global structured a bespoke facility that refinanced the existing debt and released additional funds towards completion of the refurbishment. Interest was rolled into the facility rather than paid monthly, allowing the client to preserve liquidity throughout the works. The structure was aligned with a defined exit strategy, with the intention of refinancing onto conventional long-term holiday-let finance once the refurbishment was complete and the property had begun generating income.

An alternative repayment route was also available, supported by a future liquidity event, providing additional flexibility should the preferred long-term refinancing strategy not be appropriate at the time. This gave the client greater certainty around the eventual repayment of the facility while allowing the refurbishment programme to progress without unnecessary funding pressure.

The facility was structured without early repayment charges, allowing the client to refinance or repay the borrowing as soon as the project reached completion without incurring additional exit costs. This provided maximum optionality throughout the refurbishment and allowed the financing structure to evolve alongside the property’s transition into an income-producing asset.

This case demonstrates how specialist property finance can support high-value refurbishment projects where an asset is temporarily non-income-producing. By combining additional development capital, rolled interest and a clearly defined exit strategy, Enness Global was able to create a flexible funding structure designed around the client’s project timeline and longer-term objectives.

Important:
Interest rolled into a facility increases the total amount repayable and may result in a higher balance being outstanding at the end of the term. Any proposed refinancing or other exit strategy is subject to future lender criteria, market conditions, affordability and the circumstances at the time.

Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, asset suitability and lender criteria. Terms and outcomes will vary depending on individual circumstances and are not guaranteed.

Risk Warning:
Your property may be repossessed if you do not keep up repayments on your mortgage or other borrowing secured against it. Property values can fall as well as rise, and there is no guarantee that a future refinance or sale will be available on the terms anticipated.