- Loan Amount: £2.5M
- Estimated Value: £7M
- Purpose: Complete Development
- Timeframe: Fast Completion Under Pressure
We were 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 the capital required 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 streamline the transaction. A desktop valuation and an efficient legal process helped the facility progress within the required timeframe, while Enness’ established relationships with specialist lenders enabled us to negotiate competitive terms for the client.
The bridging facility provided the client with the short-term liquidity needed to continue the development without a prolonged interruption. This allowed construction to progress while the client waited for the expected capital inflow and provided greater flexibility during the remainder of the build.
This case demonstrates how development finance and bridging solutions can provide a source of short-term liquidity when a construction project encounters an unexpected funding gap. For high-value developments where timing is critical, having access to specialist lenders can be particularly important when traditional finance may not be able to move quickly enough.
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.
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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.
