Express bridging finance exit

What was the situation?

A distressed client approached us whose bridging finance deal was due to expire in two weeks.

What was the issue?

The exit strategy their former broker suggested wasn’t possible, and was never going to be possible, due to the client’s property type, which was part commercial and part HMO. If they were not able to redeem the bridge by the deadline, they were facing a £50k penalty.

What was the process?

We visited the client to check their property out, as it was an unusual configuration. Having first-hand knowledge of the property assisted us in clearly explaining the case to potential bridging lenders we were looking at for the exit strategy. We researched the available options and managed to secure a lender and complete the new bridge the day before the penalty was due to be applied. We found a suitable exit strategy onto a ‘standard’ mortgage, which completed roughly two months after the initial refinance of the bridge.

What was the solution?

We managed to quickly obtain a new bridging lender who was able to complete very quickly and avoid the 50k penalty for the client. We placed the refinance of the existing facility onto a standard mortgage, which resulted in the client being overjoyed and relieved by the outcome, and gratefully sent a thank you gift for our hard work.