Large Bridging Loan for New Build Flat

• Client: Saudi national
• Property: New-build flat in Battersea
• Property value: £2.3M
• Loan amount: £1.61M
• LTV: 70%
• Bridging margin: 1.5% per month
• Term: 12 months

Bridging finance can provide a short-term funding solution where a property purchase needs to complete within a tight timeframe and a buyer’s original funding plans are no longer available. Enness was approached by a Saudi national who needed to complete the purchase of a new-build flat in Battersea within two weeks.

The client had originally intended to purchase the property entirely with cash. However, the transaction coincided with the financial uncertainty created by the COVID-19 pandemic, which affected the client’s available liquidity. With completion approaching, an alternative source of finance was required to ensure the purchase could proceed.

The property was valued at approximately £2.3M, and the client required £1.61M of short-term finance. This represented a 70% loan to value (LTV), providing the lender with a substantial level of equity in the underlying property.

The two-week completion deadline was the principal challenge. A conventional mortgage application would not necessarily have provided sufficient time to complete the necessary underwriting and legal processes. The client therefore required a lender capable of moving quickly while accommodating the circumstances surrounding the transaction.

Enness assessed the proposed acquisition and identified bridging finance as a potential solution. Short-term finance can be useful where a borrower needs to complete a property transaction quickly and intends to transition onto longer-term finance or otherwise repay the borrowing once the immediate funding requirement has passed.

Following negotiations with a suitable lender, Enness secured a £1.61M bridging facility against the £2.3M Battersea property. The facility was arranged at a margin of 1.5% per month over a 12-month term.

The structure provided the client with the funds required to meet the two-week completion deadline, allowing the purchase to proceed despite the change in their original cash-purchase plans.

The case demonstrates how residential bridging loans can provide flexibility when a property acquisition needs to complete quickly or a borrower experiences a temporary liquidity constraint. For international buyers, the appropriate lender and structure will depend on the borrower’s circumstances, property, available security, timescale and proposed exit strategy.

Enness works with specialist lenders on high-value and complex property transactions, including million-pound mortgages and short-term finance. Each application remains subject to lender criteria, underwriting, valuation and due diligence.

Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, affordability, valuation, property suitability, due diligence and lender criteria. Terms, rates, LTVs, fees and availability may vary depending on individual circumstances.

Risk Warning:
Property securing finance may be repossessed if repayments are not maintained. Bridging finance is short-term borrowing and can carry higher costs than longer-term finance. Borrowers should ensure that a realistic and achievable exit strategy is in place. Property values can fall as well as rise, and delays in refinancing or repaying the facility may result in additional interest and costs.