Together and Positive Lending have completed a £1.12m regulated bridging loan for a borrower selling an eight-bedroom home in Warwickshire, allowing them to clear an expensive existing mortgage and fund agreed works before the deal completes.
The facility was arranged for a high-net-worth client who had already accepted an offer on the property, valued at £1.85m, but was facing a delay while their buyer waited for the sale of their own home to go through.
That pause in the chain created time to carry out improvement works that had been agreed as part of the sale, including upgrades to upstairs bathrooms and external elements of the property. At the same time, the borrower was still making what were described as costly monthly repayments on their existing mortgage.
The bridge enabled the borrower to repay that mortgage and release around £220,000 for the works, while keeping the sale on track.
Andy Neo, key account manager at Together, says: “The client needed access to around £220,000 to complete the agreed improvements, which would protect the value of the property even if the current sale did not proceed.
“With the exit clearly supported by the sale of the £1.85m property, a regulated bridge allowed the borrower to address the improvement works while also clearing their existing mortgage in a more efficient way.”
The case was introduced by Positive Lending and completed through Together’s Premier for Intermediaries service, which is designed to support brokers placing cases above £1m. Ben Wilson, underwriting director at Together, also supported the transaction.
The loan was structured at 60% loan to value based on the on-market valuation, with a rolled-up gross loan to value of 67%.
Although the parties expected the sale to complete well within the 12-month term, a secondary exit through a buy-to-let mortgage was also agreed at the outset.
James Oldham, joint head of bridging finance at Positive, adds: “As a managing director with regulatory obligations, the client needed certainty in addition to speed.
“Having worked with Andy and the team at Together on previous transactions, we knew they had the processes and experience required to deliver a facility of this size. That confidence was reinforced by direct access to key decision-makers throughout.”
