Refinancing Bridging Loan On London Home To Relocate Home And Business To Care For Parent

The 12-month term on a regulated bridging loan for a residential property may not be long enough to sell your home without taking a substantial hit on price. Re-bridging, or a second-charge loan, may be the solution you need.

The Scenario

Our London-based client needed to move his home and consultancy business back to Northern Ireland to look after his elderly mother.

His South London property was on the market and he had a bridging loan against it to finance the relocation. But the property was taking longer than projected to sell and the repayment deadline was fast-approaching.

His bridging loan lender would impose punitive charges if he needed to extend the loan beyond the original 12-month period. It was a stressful situation, compounding our client’s concerns about his mother’s care.

The Solution

Time was of the essence: we were able to renegotiate financing within six days.

We arranged a second bridging loan with an independent lender, who was willing to extend a second-charge loan at more favourable rates. Our client gained some breathing space in which he could relocate his business and get it re-established in Northern Ireland, and find a buyer for his London home without needing to drop the price low enough to attract bargain-hunters.