Re-Bridge Secured for Homeowners Following Builder Insolvency

Poor workmanship and an insolvent builder disrupted a client’s major home renovation project. The retired couple found themselves unable to repay their original bridging loan or move into their newly purchased property.

Clifton Private Finance successfully arranged a re-bridge at 75% LTV — covering the cost of the existing bridging loan and providing additional funds to complete the work properly.

The Scenario

In January 2024, our clients — a retired couple in their 80s — approached us to arrange a regulated bridging loan. They had recently purchased a new property in Essex outright and needed £260,000 to fund a full renovation, including internal works and a double storey extension. The loan was secured against their previous residence, which they planned to sell as the exit strategy.

Initially, the process went smoothly. But by early 2025, the project had taken a difficult turn. The original builders carried out only partial works before declaring insolvency, leaving the job half-complete. Worse still, the new builders brought in discovered that much of the previous work had been done to a substandard level and would need to be redone — further increasing costs and delaying the sale of the original property.

The clients had no choice but to continue living in the property that was meant to be sold, which meant the exit route for the original bridging loan was no longer viable. With £288,000 still outstanding and significant renovation work still to be completed, they turned to Clifton Private Finance again for a solution.

The Solution

With the original lender unwilling to offer an extension, and additional funding now required, we structured a re-bridge secured against the same property at the same valuation. Re-bridges are notoriously challenging — particularly for clients in their 80s, with no mortgage exit strategy and a revised property sale timeline.

To make the case viable, we:

• Positioned the client’s situation with clarity and empathy, outlining the unavoidable circumstances and commitment to the project
• Identified a small group of lenders that could stretch to 75% LTV, a high threshold for regulated re-bridging
• Approached several lenders and secured an offer from the one who best aligned with the case

The result was a £387,000 bridging loan over 12 months, at a competitive rate of 0.84% per month. The facility cleared the existing £288,000 balance and provided additional capital to complete the renovation works properly.

The Outcome

Despite delays from legal representatives, the full process — from valuation to completion — was finalised in approximately six to eight weeks. The loan gives the clients breathing room to complete the project with trusted builders and re-list their own property for sale when the timing is right.

This case highlights how bridging finance, when handled correctly, can provide flexibility and resilience — even when plans go off course. And for our clients, having an experienced broker who understood the urgency, emotional stress, and complexity of their situation made all the difference.

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