Somo has completed a £1.2m first charge bridging loan secured against a buy-to-let property in Chelsea.
The deal enabled an overseas borrower to refinance an expiring facility, avoid a discounted sale and release capital for a hospitality business in Spain.
The £1,207,500 loan was secured at 70% LTV against a property in Chelsea and completed through Somo Prime at a reduced rate of 0.75% per month.
The borrower, a Spanish resident and experienced property investor, had reached the end of a six-year fixed-term facility with their existing lender.
Although the Chelsea property was already being marketed for sale, the borrower did not want to accept offers below their target price and needed more time to secure the right buyer.
They also required working capital to support a recently launched beach club business in a Spanish resort.
The property
The security was a Chelsea end-terrace property arranged as two self-contained flats and held under a single title, occupying a sought-after position in one of London’s most desirable residential areas and was valued at £1.725m by an independent surveyor.
The solution
Somo structured a £1.2m first charge bridging loan through its Somo prime product.
The facility enabled the borrower to refinance their existing lender while releasing additional capital for business purposes, including investment into their hospitality venture.
Rob Johnson, underwriting director at Somo: said: “Property sales don’t always happen on a perfect timeline. In this case, the borrower had significant equity in a quality Chelsea asset but needed additional time to achieve the right sale price.
“By taking a common-sense solutions focussed view, we were able to refinance the existing facility, release working capital and provide the flexibility needed to move forward with confidence.”
