£600K Bridging Loan Secured Against Main Residence to Refurbish Hotel

A London-based client needed to raise capital quickly to refurbish his hotel, but traditional commercial borrowing wasn’t the most cost-effective option.

With £1.8M in unencumbered equity tied up in his main residence, we structured a £600K bridging loan at a highly competitive rate, allowing the renovation to proceed without waiting for a property sale.

Scenario

The client owned his main London residence outright, valued at £1.8M, and also owned a hotel requiring a £600K refurbishment to modernise its interiors and enhance its market appeal.

Initially seeking a £1M loan, the client needed funds quickly but wanted to avoid the higher commercial rates that would apply if the loan were secured directly against the hotel.

Challenges

Although the property portfolio provided strong security, the main residence was owned through a limited company, a structure that often falls into a grey area between regulated and unregulated lending.

Many lenders are reluctant to lend in such scenarios due to the regulatory complexities.

Solution

We advised securing the loan against the main residence instead of the hotel. This approach not only simplified the lending process but also achieved a lower rate of 0.7% (versus 0.9% if secured against the hotel).

The £600K facility, with £697K repayable, was structured with the exit strategy being the sale of the main residence, which was already planned but delayed due to a slow market.

Result

The bridging loan was completed smoothly within three months, with no additional broker fees, only a standard application fee.

This timely financing allowed the client to proceed with essential hotel refurbishment works immediately rather than waiting for the sale of his property, preserving project momentum and cash flow.

Get started with our calculator

 

 

How much are you looking to borrow?

 

Get Started Now