StreamBank has completed a £2.61 million regulated bridging loan to fund the purchase of a neighbouring residential property in Somerset.
The 12-month facility enabled the borrower to acquire the substantial private residence without having to wait for the sale of a separate property in London.
The bridge was secured against the newly acquired property and the borrower’s existing Somerset home, which were valued at about £4.3 million in total.
The neighbouring property was purchased for £2.3 million, while the existing residence was valued at £2 million, giving an overall loan-to-value of 61%.
The funding allowed the borrower to complete the acquisition when the adjoining property became available. The family plans to move into the larger residence while retaining flexibility over the timing of the London sale.
The case was led by Lorenzo Satchell, national accounts director – property finance at StreamBank, and introduced by Sanjay Lalji of Coreco.
The borrower’s financial position was based on substantial trust assets and an established rental property portfolio rather than earned income, requiring StreamBank to consider the wider asset position when assessing the application.
The proposed sale of the London property, valued at about £2.5 million, is the primary exit strategy for the 12-month facility.
‘RARE OPPORTUNITY’
Satchell (main picture) says: “This transaction shows why the assessment of a bridging case has to extend beyond a borrower’s monthly income. For clients with substantial wealth held through trusts, property or other assets, their financial position can be far stronger than a conventional income assessment might suggest.
“The key was understanding the strength of the borrower’s overall position and structuring the loan around a credible primary exit, with further assets providing an additional repayment route.
“The adjoining property represented a rare opportunity for the family, so the value of the bridge was in giving them control over the timing of the purchase rather than forcing it to depend on another property sale completing first.”
Lalji, mortgage adviser at Coreco, adds: “Cases involving high-value properties and more complex sources of wealth depend on the broker and lender having a clear understanding of what needs to be achieved from the start.
“Being able to discuss the detail directly with the StreamBank team meant we could establish early on how the case could be structured and what would be required to get it through to completion.”
