Refinancing UK Bridging Loan

• Client: UK Resident & National
• Property: Grade II listed, 5-storey Georgian terraced property in Bath
• Property value: £990,000
• Loan amount: £693,000
• LTV: 70%
• Rate: 0.78%

Enness was approached by a UK-based client who needed to refinance an existing bridging facility secured against a Grade II listed, five-storey terraced property in Bath. The property had been unoccupied for several years and required substantial refurbishment before it could be brought back into use.

The client’s plans were to renovate the building and convert it into five one-bedroom studios for student accommodation. The project was already underway, but delays caused by the Covid-19 pandemic meant the works had taken longer than originally anticipated.

As a result, the existing bridge was approaching the end of its term before the refurbishment could be completed. Refinancing onto a conventional term facility was therefore not yet practical, and the client needed additional time and funding to finish the project.

Enness identified a specialist lender willing to consider the circumstances and arranged a new bridging facility at 70% LTV with a rate of 0.78%. The re-bridge provided the client with additional time to complete the refurbishment rather than requiring an exit while the works were still underway.

Projects involving listed buildings can require a more considered approach to finance, particularly where refurbishment works have taken longer than expected. In this case, the nature of the property, its condition and the delays to the project all needed to be considered when structuring the replacement facility.

This case demonstrates how bridging finance for property development can provide flexibility when a development does not progress according to the original timetable. A re-bridge can give a developer additional time to complete works and reach the intended exit, subject to lender criteria and the overall viability of the project.

If you are part-way through a property development and your existing finance is approaching maturity, Enness can assess your circumstances and explore specialist property development finance and bridging finance options.

Important: Bridging finance is short-term borrowing and requires a credible and achievable exit strategy. Where repayment depends on completing refurbishment or development works, delays, unexpected costs or changes in property values may affect the anticipated exit and the overall cost of borrowing. The rate referenced in this case study relates to a historical transaction and is not indicative of current or future pricing.