Bridging loan and exit onto mortgage for Staffordshire farmhouse renovation

South Staffordshire
Capital Raised

Our clients had found a Cinderella project: a Grade II-listed traditional Staffordshire farmhouse with land and outbuildings. But… it had been standing vacant for a number of years, with the lead stolen from its roofs, and its copper plumbing stripped out. For finance, it was an interesting challenge.

The Scenario

Our clients could buy the property at a £50K discount on the £450K asking price if they could get finance set up reasonably quickly. They came to us looking for a mortgage.

There were a few lenders who might have taken this on as a mortgage proposition, but considering the state of the property, the rates would have been woundingly high.

When we reviewed the options we were able to show our clients that a bridging loan refinanced onto a mortgage would work out cheaper – even with set-up fees and costs.

The Solution

1 The bridge finance

We were looking for 75% LTV of the asking-price valuation, which would allow them to pay for the purchase, the cost of the works and the cost of the interest payments.

We took their case to a lender who provides bridging finance for both light and heavy residential refurbishment bridges (so if the project didn’t qualify as light, we wouldn’t need to go for another valuation with a different lender for heavy refurb finance).

We needed to push a bit to persuade the lender the works met their criteria for a light refurbishment (roofing works, new kitchen, plumbing…). The difference saved our clients 0.25% a month.

Bridging was arranged for a nine month term, with no exit fees, so they had sufficient time to do the work but could get off bridging rates ASAP.  

2 The mortgage finance

When it came to setting up the mortgage as exit from the bridge, our clients had purchased an adjacent parcel of land and wanted to split the title. One title would have the farmhouse and the new land. The other title, with one of the barns and a strip of land, could be sold off.

We needed to find a mortgage lender who was prepared to consider a change of title, and whose valuation would be of the future configuration, not the present land division.

The lender we proposed is quite flexible and provides a free valuation. They also offer two alternatives for legal costs: either free legal services provided, or a £500 cashback towards the client’s legal fees.

We recommended the cashback deal and instructing a specialist solicitor who could handle the exit from the bridging loan and splitting the title.

We got them the 10-year fixed rate they wanted for a competitive 2.69%.

Read our blog with more details of the process »

Mathew Phillips

Finance Broker


0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Alex Chambers

Senior Finance Broker


0117 403 4324

Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.

Luther Yeates

Senior Finance Broker


0117 244 5561

Are you looking for a similar type of property finance? I have extensive experience finding residential and investment property finance for UK and international clients. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

James Palmer

Senior Associate


0203 900 4322

Are you looking for similar property finance? I specialise in development and commercial finance for Clifton - I can find creative and commercially effective solutions for your project.

Sam ONeill

Senior Finance Broker


0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

Robert Gibb

Senior Finance Broker


0117 959 5094

Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.

Adam Arnott

Associate Director


0117 205 0214

Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

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