Somo has completed a £1.645m bridging refinance on a converted London mansion in 14 days, helping a developer replace an expiring facility and secure more time to sell the property.
The loan was completed at 70% loan to value through Somo’s Standard Bridge product and was used to refinance an existing bridging facility that was close to expiry.
The borrower, a property developer, had recently acquired and converted the mansion into an investment property intended for resale. While the project was nearing completion, the developer needed more time to market and sell the asset.
According to Somo, the existing lender was not prepared to extend the facility on the same interest rate, leaving the borrower looking for a refinance that could repay the outgoing lender quickly while avoiding higher borrowing costs.
Somo said the new facility provided a nine-month extension and also released an additional £100,000 in capital. The lender added that £2,000 of legal fees were recovered as part of the deal.
The case reflects a common use of bridging finance in the current market, particularly where developers and investors are seeking extra time to execute an exit without being forced into a sale under tighter deadlines or more expensive terms.
In this instance, the refinance was structured as a first charge loan, with Somo saying the speed of execution was central to the borrower’s requirements given the approaching end of the original term.
Rob Johnson (pictured), underwriting director at Somo, says: “This is exactly where bridging should make things easier, not harder.
“By taking a pragmatic view, we delivered a fast refinance that gave the borrower time, flexibility and a better cost position.”
Somo said the refinance enabled the borrower to maintain momentum across their wider portfolio while seeking to maximise the eventual sale value of the London property.
