Key Details:
- Client: Recently retired property owner
- Property Value: Circa £4 million residential property
- Challenge: Repaying an expired private bank mortgage while allowing additional time to sell the property
- Loan Amount: Circa £2 million bridging loan
A recently retired client approached Enness Global seeking short-term finance against a residential property valued at approximately £4 million. The client's existing private bank mortgage had expired and required repayment, while they were also preparing to sell the property and downsize.
The transaction presented several challenges. Market conditions meant the client wanted additional time to market the property and negotiate a suitable sale, rather than being forced to complete a disposal within a short timeframe. In addition, the client's recent retirement meant they no longer had regular employment income, limiting the suitability of conventional mortgage options and requiring a more flexible short-term funding structure.
Enness Global introduced the client to a specialist lender and arranged a circa £2 million bridging loan secured against the property. The facility provided funding to repay the expired private bank mortgage while allowing additional time for the property sale process.
The interest was structured on a fully rolled-up basis, meaning no monthly interest payments were required during the term. The outstanding balance, including rolled-up interest, would be repaid from the eventual sale proceeds. The facility also included no early repayment charges, subject to lender terms, providing flexibility to redeem the borrowing once the property was sold.
The structure provided the client with additional time to progress the sale without relying on conventional affordability assessments or requiring an immediate disposal. This case demonstrates how specialist bridging finance can provide short-term liquidity for high-value property owners where an existing mortgage has expired and additional time is required to complete a planned sale.
Disclaimer
This case study is provided for illustrative purposes only and does not constitute financial, legal, tax or investment advice. The client scenario has been anonymised and certain details have been generalised to protect confidentiality. Finance is subject to status, underwriting, valuation, asset suitability and lender criteria. Loan amounts, loan-to-value ratios, lending structures and outcomes are indicative only and may vary depending on individual circumstances and market conditions. Enness Global acts as a credit broker and not as a lender.
Risk Warning
Bridging finance is short-term borrowing and is subject to lender criteria and an appropriate repayment strategy. Borrowing secured against property carries risk, and failure to meet repayment obligations may result in the property being repossessed. Interest that is rolled up increases the amount outstanding and therefore the total cost of borrowing.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
