We assessed the development itself and there wasn’t enough equity in the site to release any further funds, so we looked across the client’s whole portfolio to see what could be done.
Amongst the portfolio were two semi-commercial properties with enough equity to release funding to complete the build. As this was time-sensitive, we looked at bridging finance rather than a commercial remortgage as the longer the release of capital took to complete, the longer the build was on hold for, costing the client money.
The same day we applied for the bridging loan, we also applied for a commercial refinance to repay the bridging loan.
By the time the valuation had been carried out for the bridging loan, we had an offer in principle from the lender providing the exit route giving both ourselves and the client added security that the bridging loan could be repaid.
Although there were few hiccups along the way (from the client’s side), the bridging loan completed, and the build was finished. The client was very happy with our support but admitted that they wished they had contacted us sooner to avoid all of the last-minute stress.