£1.3M Bridging Loan to Support a Significant Upsize in Leeds

A client was looking to make a significant upsize into their long-term “dream home” in North Yorkshire. With a desirable mortgage rate in place and a competitive purchase timeline, they needed a short-term solution to bridge the gap between buying and selling without delaying the transaction.

Clifton Private Finance arranged a regulated bridging loan for the client to proceed, while structuring a clear exit through property sale and mortgage porting. We managed valuations, legal costs, and lender selection to deliver a cost-efficient solution that secured the property without compromising the client’s longer-term plans.

The Scenario

The client owned two properties:

• A main residence valued at £1.15m, with an outstanding mortgage of £650k, which they wanted to retain due to a favourable interest rate
• A second property valued at £400k, owned outright with no mortgage

They identified a new purchase at £1.4m, representing a sizeable step up. While the client had sufficient equity across their portfolio, the sale timings and refinancing requirements didn’t align with the speed needed to secure the new property.

The plan was to complete the purchase quickly and then repay the bridge through a sale of the existing main residence, combined with a small refinance and mortgage port, allowing the client to keep their existing competitive mortgage product rather than moving onto a higher rate.

Challenges

This case presented several layers of complexity:

• The overall leverage resulted in a relatively high LTV of 73%, which narrowed the pool of suitable bridging lenders
• The loan needed to be secured against three separate properties, each requiring valuation
• The client was under time pressure and did not want to risk losing a rare opportunity on a standout property

Legal costs also became an unexpected issue, with initial quotes for separate representation exceeding £6,000 + VAT, adding unnecessary friction to the transaction

Careful coordination was required to ensure the exit strategy stacked up, while keeping costs and stress to a minimum.

The Solution

We structured a £1.3m regulated bridging loan at 0.73% per month, secured across all three properties. To keep the process efficient, we arranged short-form valuations on each asset, ensuring the lender was comfortable with the security position without unnecessary delays.

A key part of our role was managing the refinance and porting strategy, making sure the lender fully understood that the client intended to retain their existing mortgage and only refinance what was strictly necessary once the sale had completed.

On the legal side, we stepped in when the client was quoted excessive fees. By introducing an alternative solicitor experienced in bridging transactions, we reduced legal costs by 50% from over £6,000 + VAT to approximately £3,000 + VAT, without compromising on service or speed.

The Outcome

Despite the complexity and multiple moving parts, the transaction completed successfully in around four months, driven largely by valuation, legal coordination, and the need to carefully structure the exit.

The client was able to:

• Secure their £1.4m dream property without missing out
• Retain a valuable existing mortgage rate through porting
• Avoid unnecessary refinancing costs and inflated legal fees

Move forward with a clear, achievable exit strategy via sale and refinance

This case highlights how bridging finance can be used strategically for upsizing purchases, particularly where clients want to preserve existing lending arrangements while navigating tight timelines and complex asset structures.