Pallas Capital has completed a £1,275,000 bridging loan to refinance a residential development in Oxshott, supporting a borrower facing mounting pressure from an outgoing lender and second charge investor.
The 12-month facility, structured at 75% LTV, was led by Anna Thompson (main picture, inset), originator at Pallas Capital, and secured against a residential property mid-refurbishment.
The loan enabled the borrower to refinance both first and second charges and complete works, with exit planned via sale once the property is finished and fully marketed.
UNMARKETABLE ASSET
The developer had been left with an unmarketable asset after a previous buyer withdrew mid-project, despite having requested and funded additional refurbishment works. With the property stripped back and incomplete, and a second charge investor seeking repayment, a bridging solution was structured to stabilise the position.
During underwriting, previously unknown issues pushed the case outside standard criteria.
Pallas said it adopted a pragmatic approach, structuring a stepped rate to reflect additional risk, with a planned reduction once outstanding matters are resolved. Funding was advanced based on the value upon completion of works, with defined deadlines to protect the exit.
The transaction required coordination with the outgoing first charge lender and additional legal work relating to the second charge. Pallas confirmed the loan was funded from its own capital lines.
CHALLENGING CIRCUMSTANCES
Anna Thompson, originator at Pallas Capital, says: “This transaction is a strong example of how a well-structured bridging facility can provide stability in challenging circumstances.
“From the outset, we understood the borrower needed more than capital – they needed certainty, speed and a partner willing to work through complexity.
“By maintaining transparent communication and taking a pragmatic underwriting approach, we were able to structure a solution that addressed immediate pressures while supporting a clear path to exit.
“At Pallas Capital, we are focused on backing experienced borrowers and brokers with flexible capital and proactive management. Completing this facility demonstrates our ability to move decisively, manage risk responsibly, and deliver outcomes that protect all stakeholders.”
