- Loan Amount: £2.5M
- Estimated Value: £7M
- Purpose: Complete Development
- Timeframe: Fast Completion Under Pressure
Enness was approached by a high-net-worth client who was midway through the construction of a luxury property when an expected capital inflow from another transaction was unexpectedly delayed. This created a short-term funding gap, leaving the client without the capital required to continue the build and creating the potential for disruption to the construction programme.
The part-completed property was located in a highly sought-after area and had an estimated value of approximately £7M upon completion. With contractors already engaged and further delays potentially increasing construction costs, the client required a fast and flexible financing solution that could provide liquidity while the anticipated funds were delayed.
Enness identified a suitable bridging finance solution and arranged a £2.5M facility secured against the development. The facility provided the client with capital to continue construction and maintain progress while awaiting the delayed funds.
Speed was particularly important, so Enness worked closely with the lender and other parties involved to progress the transaction within the required timeframe. A desktop valuation and an efficient legal process helped facilitate the transaction, while Enness’ established relationships with specialist lenders provided access to lenders able to consider the requirements of the case.
The bridging facility provided the client with short-term liquidity to continue the development without a prolonged interruption. This allowed construction to progress while the client waited for the expected capital inflow and provided additional flexibility during the remainder of the build.
This case demonstrates how development finance and bridging solutions can provide short-term liquidity when a construction project encounters an unexpected funding gap. For high-value developments where timing is important, specialist finance may provide an alternative where traditional funding cannot meet the required timescale.
If you are developing a high-value property and require short-term funding to manage an unexpected cash flow requirement, explore fast bridging finance or speak to a mortgage specialist about your requirements.
Important: Bridging finance is short-term borrowing and requires a credible and achievable repayment or exit strategy. Where repayment depends on completing development works and receiving a future capital inflow, delays, unexpected costs or changes in property values may affect the anticipated exit and the overall cost of borrowing. An estimated future property value is not guaranteed and may differ from the value ultimately achieved.
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.
