Security-led funding structure delivers completion capital for live refurbishment project
What was the situation?
With refurbishment works nearing completion on an investment property in Kent, the client required £120,000 of additional capital to finalise the build and prepare the property for sale.
The project asset was already subject to a first charge, and the client also owned a main residence in Twickenham with an existing second charge in place. Any funding solution needed to be delivered without disrupting the build programme or unsettling the client’s wider debt position.
What was the issue?
The first charge lender on the refurbishment property did not consent to any further secured borrowing against the asset. This prevented additional leverage or a second charge structure on the project property and removed the most obvious route to raising completion funding.
This is a recognised lender position designed to protect senior security. However, with the project live, the challenge was to identify a route that respected lender hierarchy while avoiding delay, additional risk or structural compromise.
What was the process?
Nick McLean, Associate Director – Specialist Finance, approached the case as a security and debt-structure consideration rather than a property-specific funding request. Once it was clear the project asset was constrained, the focus shifted away from the refurbishment property and towards the client’s wider security position.
The client’s main residence was identified as the most appropriate funding platform. A second charge bridging facility was structured to refinance the existing second charge while releasing additional capital within the same transaction to fund completion of the refurbishment works.
The facility incorporated redemption of the existing charge as day-one debt, ensuring a clean and clearly defined security position. LTV parameters, lender appetite and legal structure were aligned from the outset to maintain clarity, minimise execution risk and avoid unnecessary complexity.
The transaction completed within approximately three weeks, allowing the build programme to continue without interruption.
What was the solution?
A 12-month second charge bridging facility of £140,000 gross was arranged at 33% LTV, releasing £120,000 net for the client.
The structure enabled the refurbishment to be completed and the property to move into a sale-ready position, without disturbing the first charge lender’s security on the project asset or increasing risk across the client’s wider holdings.
This case reflects LDN Finance’s approach when standard funding routes are constrained: recognising structural limitations early, exercising judgement over pressure, and structuring around lender realities to preserve delivery and control risk.
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