Bridging Loan for Semi-Commercial Property with Complex Exit Strategy
The Scenario
Our client was looking to purchase an incredibly unique property in Bath, Somerset, for £2.45m.
It was a semi-commercial property, previously being used as a conference centre for a large national business.
Our client had earmarked it to become a beautiful main residence, but he wouldn’t have the money to buy the property until his current home sold.
With his current house being a unique and high value property, it would likely take a while to sell, and he didn’t want to rush it by dropping the price.
So, he was looking to use a bridging loan of £2.55m to secure the purchase and cover the stamp duty. He would repay it when his current home valued at £2.45m sold at a good price.
However, because the property was semi-commercial and didn’t yet have change of use permissions to convert it to a residential dwelling, it meant that about 70% of bridging lenders were ruled out for his application right off the bat.
Added Complexity
The real complications arose with the valuations of the client’s current home that he was using as security and the exit for the loan.
Your lender will always require a fresh valuation for any property you’re using as security.
And this stage can be unpredictable, and occasionally causes roadblocks in bridging deals:
- Every lender uses a different panel of valuers so there’s a lot of variation in processes and outcomes
- Some can accept online valuations (quicker and cheaper), but some can’t
- And some only use a 180-day valuation, which is what they’d expect the property to achieve if it needed to be sold within 180 days (this generally works out less favourably for higher-value assets that typically take longer to sell)
The first lender we approached for this client came back with a staggering low £2m valuation of our client’s main residence, sending his Loan to Value sky-high and voiding the deal.
The Solution
We knew that the second lender we typically favour for a semi-commercial bridging loan would use a 180-day valuation, which would likely fall short for our clients’ unique property.
So, we applied with a third lender we knew would use the open market value figure.
It came back spot on at £2.55m, and the deal could go ahead.
One final complication for the case that kept our broker on his toes was that the client’s current home was also part-owned by his SIPP. He had the cash to buy it out, but it required some extra oversight of the communication between the various parties involved.
Finally, with the bridging loan secured, our client could apply for the change of use and move into their new once-in-a-lifetime property.
We think his case underscores our expertise in handling complex bridging finance scenarios – from navigating valuation discrepancies to managing unique ownership structures, we have extensive experience in thinking on our feet and adapting to our clients’ needs.
Simon Mullins
Finance Broker CeMAP
Cardiff
0117 959 5094
Are you looking for a similar type of property finance?
As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.
Paige Dumpleton
Finance Broker CeMAP
Cardiff
0117 959 5094
Are you looking for a similar type of property finance?
As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.
Jonathan Moffatt
Head of Business Finance
Cardiff
0203 880 8890
Do you need help sourcing your own business finance?
I have extensive experience securing finance for a wide range of businesses. Book a free telephone consultation with me at a time to suit you.
Alex Morris
Private Client Adviser
Bristol
0117 332 5061
Do you need help sourcing your own property finance?
I have extensive experience securing UK mortgages for clients. Book a free telephone consultation with me at a time to suit you.
Scott Dutfield
Finance Broker
Cardiff
0117 959 5094
Are you looking for a similar type of property finance?
As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you
Carly Cheeseman
Head of International
Bristol
0117 457 9922
Do you need help sourcing your own property finance?
I have extensive experience securing UK mortgages for clients. Book a free telephone consultation with me at a time to suit you.
Nick Kerley
Finance Broker
Cardiff
0117 959 5094
Are you looking for a similar type of property finance?
As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.
Specialist Car Finance
Broker Finance Team
Bristol
0203 900 4322
Do you need help sourcing car finance?
Speak to our finance team or book a team to speak that suits you.
Book ConsultationBusiness Finance
Business Finance Broker Team
Bristol
0203 880 8890
Do you need help sourcing business finance?
We have extensive experience sourcing unsecured and secured finance for businesses. Book a free telephone consultation with our business loans broker team at a time to suit you.
Mortgages & Short Term Finance
Mortgage Broker Team
Bristol
0117 959 5094
Do you need help sourcing a UK mortgage?
We have extensive experience securing 1st and 2nd charge mortgages. Book a free telephone consultation with our mortgage broker team at a time to suit you.
7 Reasons why you should use a specialist mortgage broker »
Book ConsultationDevelopment Finance
Broker Team
Cardiff
0117 959 5094
Do you need help sourcing UK property finance?
We have extensive experience securing UK development finance. Book a free telephone consultation with our team at a time to suit you.
Expat and Foreign National Mortgages
Broker Team
Bristol
+44 203 900 4322
Do you need help sourcing UK property finance?
We have extensive experience securing UK mortgages for clients based outside the UK. Book a free telephone consultation with our team at a time to suit you.
Louis Levine
Finance Executive CeMAP
Bristol
0117 457 7862
Are you looking for a similar type of property finance?
Get in touch today and find out how I can help.
Do you need help sourcing your own property finance?
I have extensive experience securing UK mortgages for clients. Book a free telephone consultation with me at a time to suit you.
Bridging Team
Clifton Private Finance
Bristol
0117 959 5094
Are you in need of a similar type of property finance?
Book a free telephone consultation with one of our bridging specialists today and see how we can help you.
Book ConsultationSam Baker
Finance Broker
Cardiff
0117 959 5094
Are you looking for a similar type of property finance?
As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.
Fergus Allen
Senior Finance Broker
Cardiff
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.
Book a free telephone consultation with me at a time to suit you.
Book ConsultationJacob Phipps
Finance Broker
Bristol
(+44) 0117 959 5094
Are you looking for a similar type of property finance?
I specialize in helping international clients source residential and investment property finance for UK property. Book a free telephone consultation with me at a time to suit you.
Book ConsultationJack Spillane
Finance Broker
Bristol
0117 959 5094
Mathew Phillips
Senior Finance Broker
Bristol
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.
Book a free telephone consultation with me at a time to suit you.
Book ConsultationAlex Chambers
Senior Private Client Adviser
Bristol
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.
Book a telephone consultation at a time that suits you.
Book ConsultationLuther Yeates
Senior Finance Broker
Bristol
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. Book a free telephone consultation with me at a time to suit you.
Book Consultation
Sam ONeill
Senior Finance Broker
Bristol
0117 959 5094
Is your situation similar?
I am a bridging finance specialist at Clifton Private Finance. I can find a quick, cost-effective solution for the funding you're looking for. Book a free telephone consultation with me at a time to suit you.
Book Consultation