- Client: Recently retired property owner
- Property Value: Circa £4M residential property
- Challenge: Repaying an expired private bank mortgage while allowing additional time to sell the property
- Loan Amount: Circa £2M bridging loan
A recently retired client approached Enness Global seeking short-term finance against a residential property valued at approximately £4M. 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 required 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 £2M 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.
BRIDGING FINANCE IS SHORT-TERM BORROWING AND REQUIRES A CREDIBLE AND ACHIEVABLE REPAYMENT OR EXIT STRATEGY. WHERE REPAYMENT DEPENDS ON THE SALE OF A PROPERTY, DELAYS, CHANGES IN PROPERTY VALUES OR MARKET CONDITIONS MAY AFFECT THE ANTICIPATED EXIT AND THE OVERALL COST OF BORROWING. WHERE INTEREST IS ROLLED UP WITHIN THE FACILITY, THE TOTAL AMOUNT REPAYABLE CAN INCREASE.
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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.
