Bridging Case Studies

Client A was due for an imminent eviction. He had been ill and missed mortgage payments, and the arrears were now spiralling out of control. Client A had only a small mortgage on the property and lots of equity but could not remortgage due to the recent missed mortgage payments. We were able to obtain a small second-charge bridging loan, secured on the subject’s property, to clear the arrears and avoid repossession. We also guided the client in the methods required to prevent the eviction process, allowing time for the bridging loan to be completed. We are now in the process of providing new finance to clear the original mortgage and second charge bridging loan, thus giving Client A a much-needed new start.

Client B bid for their dream house at auction. This property was also wanted by a number of other interested parties, including cash buyers. To secure the deal Client B was required to make an immediate offer, under the strict condition that completion must take place within 28 days of the auction date. We put a second charge bridge against the client’s current home and a first charge bridge on the new property. This resulted in the purchase being completed within 11 days, which was way ahead of expectation. Client B has now sold the original property and taken a small mortgage on the new property to repay our auction bridging loan.

Client C runs a small cleaning business. Due to an unexpected surge in business and to take advantage of a competitor’s slip, our client needed to purchase heavy industrial washing equipment within the month. We quickly arranged a bridge, secured against our clients business premises, allowing the necessary purchases to be made. The client was then able to repay the bridge within 4 months, due to increased turnover and profits.

Client D was a regular property developer. Property development is now considered high risk by most high street lenders and even sources our client had used for many years declined further borrowing. As such our client was left without the development finance required to complete his part of the finished building projects. We arranged finance secured on the part built assets allowing our client to complete his project and ultimately preventing the closure of his business. Our client has now sold a number of completed units and has repaid our bridge after 8 months.

Client E is one of our self-employed clients, who had a large tax bill to pay. He also needed extra finance to make his property marketable. Within a day we were able to arrange an agreement in principle and submitted an application on our clients’ behalf. We were able to quickly arrange the bridging loan to allow the customer to pay his tax bill on time. He was also able to start the work needed on his property and will shortly be able to market that property so that he can repay the loan.

Client F was downsizing and looking to purchase a new smaller property. She didn’t want to miss out on a new home she had set her sights on. Her existing property had some previous holiday lets. These Holiday lets had not been let out in over 4 years. As this property had a commercial element to it the client was struggling to find a lender. We were able to find her a willing lender who secured against both properties. She didn’t lose out on her preferred new home and will repay the bridging loan once her current property sells.

Client G owned 2 properties in London both with outstanding mortgages on them. The client’s mortgage was on an interest only basis and the term was coming to an end. We were able to swiftly arrange a bridging loan to repay the existing mortgage. The client was also able to borrow extra funds to consolidate existing debt. He will be repaying the loan as soon as one of his properties sells.

Client H wanted to purchase a dilapidated industrial building for over the market value. He had been rejected by a few lenders already. The client intended to purchase this building and convert it under permitted development into two units. He wanted to borrow enough funds to buy the property and do the required work. He was also using a property in a separate company name as collateral. We managed to arrange some terms within 24 hours and swiftly made an application on behalf of the client. He will repay the incomplete property loan by sale of the refurbished units.

Client I owned an unencumbered house in South London that he was converting into 4 flats. He needed finance to do the full work. He had all the planning permissions necessary in place. As the property was wind and water tight we were able to swiftly arrange a loan for heavy refurbishment work. The client planned to complete the work and sell 3 of the completed flats and repay the loan.

The clients were looking to borrow some funds in order to complete the purchase and refurbishment of a new investment property. The clients had recently decided that they would like their investment properties to be in a Ltd company name, so UK Property Finance were able to guide them through the differences in the process for a Ltd company vs a personal name purchase.
The works to be done were not structural and did not require planning so we were able to obtain them a market leading standard bridging loan rate. The purchase was able to be used as sole security for the loan as the client intended to sell at a profit in order to exit the loan.

The bridging loan was able to be completed within 4 weeks allowing them to keep their vendors happy and get the works started.

Mr. Hadley, a seasoned property investor, found the perfect home for his growing family in a highly sought-after location. Unfortunately, he faced a dilemma: the sale of his existing property was delayed, and he risked losing the opportunity to purchase the new house. Time was of the essence, and Mr. Hadley needed quick access to funds to secure the property.
After researching his options, Mr. Hadley approached UK Property Finance, known for their expertise in providing fast and flexible financing solutions. Understanding the urgency of the situation, UK Property Finance immediately reviewed Mr. Hadley’s financial circumstances and the value of both his current and future properties.

They suggested a bridging loan, which would allow Mr. Hadley to borrow against the value of his existing property until the sale was completed. With their vast network of lenders, UK Property Finance was able to secure a highly competitive rate and approved the loan within a matter of days. This enabled Mr. Hadley to move forward with the purchase of his new home without any delays.

The process was seamless, and Mr. Hadley praised UK Property Finance for their efficiency, clear communication, and tailored approach. Once his previous property was sold, the bridging loan was repaid, and Mr. Hadley successfully transitioned into his new home, all thanks to the timely assistance of UK Property Finance.

Repossession prevented as clients’ interest-only mortgages reach maturity.

Client H came to us as their interest only mortgage came to an end, they were still making regular payments to their bank for a further year after the expiry date however the bank was recalling the debt and pursued repossession on the property if the client couldn’t get the mortgage balance settled within 4 weeks.

The property was a residential house with a barn conversion on the land that hadn’t yet been split from the title for the clients to sell this part. Due to the clients age, they were unable to get another mortgage on the property and long term they wanted to repay the finance with the sale of the barn they just needed the time to sort the split with the land registry and market the property.

UKPF provided a quotation to the client within 1 hour of the client making contact and got new lender terms within 48 hours, the case was processed through to completion avoiding the repossession taking place 4 weeks from initial contact.

The client was able to keep their property that they had owned for 25 years, apply for the split and market the barn conversion for sale to repay the bridging lender easing all the pressure that had been mounting on them from the original mortgage lender and the thought of them losing their family home.

Sarah, a homeowner facing multiple outstanding loans with high interest rates, utilised a bridging loan to pay off her debts. By securing a short-term loan against the equity in her property, Sarah was able to consolidate her debts into a single, more manageable repayment plan. This move helped her reduce the overall interest rate she was paying, and, crucially, it provided her with a temporary financial buffer. While bridging loans typically come with higher interest rates, they allowed Sarah to avoid bankruptcy and buy time for more long-term financial planning.

We were approached by a UK national who was looking to purchase an old textile mill in the north of England so he could develop it into student flats (subject to planning). He had a substantial deposit and other assets to pledge as security, but although he was in the process of undertaking a similar development close by, he was deemed by the mainstream lenders to have “little experience”.

Before contacting any lenders, we met the client on-site to fully understand his requirements, and through our vast database of lenders, we quickly identified a company that was best suited to not only providing the development finance required for the deal but also one that would be able to take a look at his lack of experience by looking at the bigger picture of this deal.

Prior to commencement, it was immediately evident due to the previous uses of the building that the nature of the security would bring with it legal and environmental issues, which required a lender with the knowledge and experience needed to work with us all on the matters in question. Our lending contacts were of the utmost importance in obtaining funding in this highly complex area, and we worked alongside the borrower every step of the way until the purchase was completed. We even used our outside contacts to obtain the specialist reports required by the lender to achieve funding.

It was the hands-on involvement of UK Property Finance that ensured the case was completed. The legal process, as suspected, was very complicated and difficult, with problematic tenancy agreements, asbestos and other environmental issues, plus title problems, which meant that only due to the experience of the staff at UK Property Finance was the case able to be completed.

By using an experienced and qualified bridging loan broker who added value due to his knowledge, the case progressed with minimal issues for all parties and prevented our client from missing out on an excellent opportunity.

Overall, a very satisfied and repeat client, and a good deal completed.

A local developer found a farm plot with attached cottages, outbuildings, and 7 acres of land. The developer was well known in the area and fully understood that the plot had great potential. Although he was very experienced with projects of this size, his bank would not lend him the funds needed, even though the purchase price was significantly below market value.

We assessed his needs and managed to help find a quick solution that meant he was able to acquire the development finance required within days. The developer then successfully applied for the planning permission required to build additional properties on the land, thus making a substantial gain on his original investment. Half the properties were sold to repay the bridging loan, and the remainder were kept to help fund future developments and as an eventual pension pot.

Naomi inherited a property that needed significant renovation for it to reach modern-day living standards. While Naomi was in the process of applying for a mortgage on the property, she became impatient and removed the kitchen and bathroom.

When the mortgage surveyor came to value the property, he deemed that it was now not habitable, and Naomi was therefore unable to get the mortgage required.

Additionally, Naomi had no funds of her own to complete the work necessary to make the property habitable again.
Naomi emailed us using our “obtain a quote” form, and one of our experts was able to obtain property development finance of £45,000, which enabled her to install a new kitchen and bathroom and completely renovate the property. As soon as this was done, Naomi was able to return to her mortgage broker and obtain a mortgage, which was used to repay the bridging loan.

Pete ran a successful manufacturing business along with his business partner, John. John had to leave the company at short notice for personal reasons and wanted to sell the business; however, Pete wanted to continue running it by himself.

Pete came to us for the funding needed to buy John’s shares and, additionally, to keep the business running smoothly through the transitional period. We were able to lend all the required money to Pete secured on the company’s unencumbered business premises, with an additional charge over Pete’s home. This gave Pete enough time to raise funds through a management buy-in and repay the commercial bridging loan.

As a highly successful landlord looking to expand his business empire, Jeff Khan was always looking for new and more profitable areas in which to grow. He had been investing in standard terraced and semi-detached properties that needed updating before refinancing onto a BTL basis; however, Jeff was no longer happy with the scale of this method as the ongoing squeezed rental profit margins were much lower than he was looking to achieve.

While generating ideas, he came across a fire-damaged ex-mill, and following a eureka moment, he had the idea of converting this into flats that could be used to complement the students and young professionals in the area. The project would give Jeff a vastly improved profit return as well as improve the view of the area that was being badly blighted by the appearance of the building. The structure of the unit was fine despite the dilapidated internal condition, and as Jeff was renowned for the high-end finish of his properties, he knew that he would be on to a winner provided he could obtain the finance required for the purchase and renovation.

Although Jeff was a very well-organised and professional individual, his local business bank, due to his lack of experience, was not able to arrange the required finance. However, luckily for Jeff, the manager had good experiences with recommended UK Property Finance in the past and gave him our number to call.

We met Jeff on-site and reviewed in depth the reams of paper that Jeff had meticulously prepared in support of the development. Due to our wide-ranging knowledge, we immediately knew that Jeff would be wasting his time and effort by visiting numerous high-street lenders in his attempt to obtain and locate the required financing. High Street lenders usually prefer to fund tried and tested applicants, and as this was a new and much larger venture than Jeff had attempted in the past, it was clearly not something for the traditional banks.

With this in mind, we contacted a number of so-called ‘challenger banks’ and gave a brief overview. These are smaller specialist lenders who are growing in stature and challenging the dominance of the much larger and better-known institutions. A number of those approached could see the benefit of Jeff’s project, and within a week we had three firm offers to discuss with Jeff. One of the offers included funding for the full cost of the development, and as such, this was the lender chosen by Jeff.

We worked with Jeff to present the full case to the lender in the right manner and soon achieved a formal offer and subsequent funding for the project. Jeff, being Jeff, already had the builders lined up, and work commenced immediately on receipt of the first tranche of money. A fully completed’show flat’ soon followed, and within 9 months of the 18-month agreed term, Jeff had the project finished to the highest of standards, and over half of the 200 flats had been pre-let, with deposits taken.

On Jeff’s behalf, we were able to obtain highly competitive, longer-term, bridging finance for the now-completed and partially rented property, and within 12 months of initial receipt, Jeff had repaid the development finance and was sitting back and watching the profits roll in. It is anticipated, due to the rent receipts, that the property will be mortgage-free within 5 years.

We are currently working with Jeff on his second project.

As an elderly couple living in a large house in an expensive part of London, Helen and David had finally decided that enough was enough. They could not afford to run or maintain the property correctly, nor did they have enough ‘day-to-day’ income to live as they would like, which included occasional holidays and visits to their children and grandchildren who had left London some years beforehand.

Helen and David had calculated that for a quarter of the price of their London property, they could sell up and buy a virtually identical house in the Midlands, within two streets of their close family. This would leave Helen and David with a property similar in stature to their current home but with lots of extra cash in the bank to enjoy the remainder of their lives and vastly improve their living standards.

Unfortunately, however, the property in the Midlands had received much interest from other potential buyers, and as Helen and David had a house to sell that was not yet even properly marketable, they were unable to make an acceptable offer on the property. They did not have access to cash, which would enable them to purchase the new house outright, and additionally, just as importantly, they had many memories of the London property, having lived in the house for over 40 years, and many sentimental objects that they wanted to carefully sort through before selling, so a quick move was not really an option for them.

UK Property Finance was known to the client’s son as he had used our services in the past when arranging development finance, and as such, he asked us to speak with his parents. We met with Helen and David, and after a brief discussion, we showed them how we could raise the full purchase price of the new property without them having to sell their current London home to arrange the funds. We would also be able to raise extra funds for a much-needed ‘tidy-up’ prior to marketing. They were overjoyed with our proposal and asked us to proceed as a matter of urgency. A ‘Decision in Principle’ was immediately presented to the selling estate agent, allowing the offer of Helen and David to be formally accepted by the seller.

The finance was available within 2 weeks of our initial discussion and at a market-leading bridging loan rate. Helen and David now had 12 months in which to move properties and sell up, but in an organised way that suited them. The finance arrangement had no monthly payments and no exit penalties if repaid within the 12-month term. The sale of Helen and David’s property happened 7 months and 6 days after the finance was issued, and as such, when the loan was repaid, interest owed was calculated to the day for the time that the loan was active.

Helen and David could not be happier about how things have turned out.

Our client was looking to borrow enough to clear her current mortgage and second-charge mortgage on her residential property in the UK. Her husband had passed away unexpectedly, and he had been the main income earner, which left the client unable to effectively manage her monthly payments.

Due to the change in household income, the current mortgage lenders and other mortgage lenders would not re-finance the property to allow for longer-term and thus more manageable payments. The current lenders had extended the mortgage redemption date by 6 months to allow the client time to find an alternative arrangement.

The client’s residential property was used as security for the loan. Due to the unique nature of the property, it had taken a while to find the perfect buyer. The property was being actively marketed, and the exit strategy for the bridging loan was the sale of the client’s current residential property when she moved in with her daughter. The client’s 6-month leeway period was nearly over as they approached us, and the existing lender had an increasingly pressurised approach to repaying their loan.

Thanks to the team at UK Property Finance and their good relationship with the new lender, the client was able to avoid her house being repossessed, which would impact her credit file. The client now has an additional 12 months in which to sell her property fairly via an estate agent.

Our clients were almost finished; wind and watertight, the development site had overrun the loan term and, as such, had been repossessed by the current bridging/development finance lender and was now in the hands of the receiver.

The receiver was looking for an early auction sale to recoup the current lender’s loan, but our client wanted to salvage the situation in the best way possible. As he had given a personal guarantee for repayment of the loan, our client’s previously good credit history was now under serious threat, and he believed that once it became public knowledge that the site was a repossession, the profit available within the site would no doubt be reduced or eradicated by the receivers achieved sale price and mounting costs.

Our client wanted to buy back the site and, as such, contacted UK Property Finance following a recommendation from a developer contact who had used our services in the past. An advisor spoke to our client in depth, but due to the lack of equity available within the site, additional security was required to enable the purchase and to complete the remaining works.

The sister of the client offered her residential property as security, although she already had a mortgage secured on the property. We obtained a finance agreement in both names to repay the current bridging and development finance with a bridging loan secured via a first charge across the development site and a second charge on the sister residential property.

The funds were quickly in place, preventing the auctioning of the site and extra receiver charges, and the additional money was raised to complete the build. Once complete, our client had plenty of time to sell the properties in a controlled fashion and, as such, maximise his return to repay the new loan and release the charge over the sisters’ property.

The sister would also receive a bonus for helping her brother out of a very difficult situation.
UK Property Finance is highly skilled in sorting complex cases and has access to any lender in the market. We very carefully choose the right funder, as every deal is different.

The chosen lender in this case was formed to tackle deals of this nature and offered a highly competitive rate of interest. UK Property Finance and our client were on a tight deadline to avoid the loss of the development site, and our strong lender and solicitor relationships ensured a positive outcome.

The client was looking for a bridging loan to carry out home improvements on a new residential property he had recently purchased. He had bought the property in Burnley for a bargain price and was looking to upgrade and increase the value before moving in by adding a new kitchen and bathroom, extending the lounge and garage, and repainting.

The client’s current main residence had no outstanding mortgage and was currently on the market for sale. We used the client’s current main residence only as security for the loan, as this was the most cost-effective route, and the client was able to carry out the work to make the property habitable before moving in. The client was to repay the loan when his main residence sold, and he would then move into the newly renovated property.

Thanks to UK Property Finance, he was able to get the best rate available on the open market, and we as brokers were able to overcome issues that arose throughout the application process relating to ground rent and service charges thanks to our excellent relationships with lenders and solicitors.

A regulated bridging loan was completed during the COVID-19 pandemic for a client relocating back to the UK from the USA, where he was still living and had lived for many years. The client was in the process of returning from the US back to the UK.

He had an offer accepted on a house in Wales and was about to put his US house on the market when COVID-19 arose. He expected to cover most of the purchase price by liquidating investments but needed a bridge to cover the costs of relocation and some essential work on the property before his house in the US sold. The client required a £75,000 bridging loan, which would be secured on the new property, which was purchased for £245,000. Repayment of the bridging loan would be through the sale of his US property.

UK Property Finance was able to access the best rate available in the market for the client’s circumstances. The chosen lender was also able to offer an FCA-regulated bridge for a client who was not currently living in the UK, had not lived in the UK for many years, but would be returning to resume UK residency.

The client received all the finance documents by email, printed them out, signed, scanned, and returned them via email to UK Property Finance. UK Property Finance then submitted it to the lender for underwriting without delay.

Although underwriting was completed and the case passed to offer, major issues resulted because of the COVID-19 pandemic. The client’s investments were badly impacted by the turmoil in global stock markets, and due to travel restrictions, he was unable to return to the UK to conduct the legal requirements of the case. Throughout the process, the UK Property Finance team worked diligently with all parties and dealt efficiently with the numerous problems that arose as the case progressed.

UK Property Finance, the lender, and both sets of solicitors veered away from normal protocols and agreed to a way in which the client could complete his legal obligations while remaining in the US, thus allowing the case to move forward to completion.

Thankfully, all parties showed great flexibility and a can-do attitude to complete the case, and at no time was it ever accepted that the case could not be moved forward to completion. The dedicated caseworker at UK Property Finance ensured there was a joined-up approach to every issue arising and was dealt with in the same manner as all communication that was received.

Although by the time of completion, all parties were working remotely, our systems are designed to be flexible, and our cloud-based case management software allowed our team to have up-to-the-minute information to monitor all our cases.

The case was completed just as the lockdown restrictions were beginning to ease, and as soon as it is safe to do so, our client will now be able to move into his new home.

Replacement 1st charge regulated bridging loan following the withdrawal from the market of the initial lender due to COVID-19. Our clients were looking to borrow £551,600 to purchase a new residential property for £520,000; the remaining balance was to be used to cover the cost of stamp duty and other fees.

The clients’ current residential property was valued at £674,000 and had no outstanding borrowing. Both properties were to be used as security, giving the clients the financing they needed at the best possible rate. The clients requested free legal fees and a free valuation if possible.

Due to our premier status, UK Property Finance was able to access the best possible rate available in the market for our client’s requirements. The loan documents were completed during a collection agent visit the day after the initial communication with our client, and a scanned copy of the case was submitted to the lender without any delays.

The case was well into the underwriting phase when the initial lender made the decision to put the case on indefinite hold due to the COVID-19 pandemic. The clients still wanted to proceed with the purchase, so UK Property Finance managed to obtain a new lender agreement that matched the initial terms. The vendor and the estate agent were very anxious to complete the sale, so everything possible was done to help ensure that we met expectations.

With our COVID-19 contingency plans fully up and running, UK Property Finance were still open for business, and our dedicated advisor and processor were able to impress the urgency of this loan with our new partner lender, who agreed to process the case by using a rewrite of the initial valuation and refining legal proceedings, meaning minimal additional cost to our client and a much quicker completion. The initial lender’s withdrawal was in no way a reflection on the client or indeed UK Property Finance, but as a gesture of goodwill, UK Property Finance offered to help with the cost of both the legal and valuation fees.

By this time, UK Property Finance’s processing team was working remotely, but they submitted the case in the middle of the lockdown and chased the underwriting multiple times daily to ensure service levels remained at our normal high standards and that any obstacles were successfully overcome as soon as they were encountered. With our continuous involvement, the case moved smoothly to offer, and during the legal phase, the team liaised effectively with all parties to achieve completion within 12 working days.