- 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 forcing a premature 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.
Risk Warning:
Bridging finance carries risks. Development projects can experience delays, unexpected costs or changes in value. If you do not meet the terms of the facility, the lender may take enforcement action against the secured property.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting, project assessment and lender criteria. Terms and availability will vary depending on individual circumstances and the proposed development.
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.
