Case Study –Using Bridge-to-Let Finance to Support Portfolio Growth

Client

An experienced professional landlord approached Henry Dannell seeking finance for a time-sensitive investment purchase.

The strategy was to acquire the property using bridging finance, complete the required modernisation works and then refinance onto a standard buy-to-let mortgage once the property met the relevant criteria.

The requirement was not simply to complete quickly.

The client needed a short-term facility that supported the acquisition while also allowing for a clear and credible route into longer-term borrowing.

The Solution

We secured bridging finance at 75% gross loan-to-value with a monthly interest rate of 0.84%. By working closely with the lender, we clarified the evidence required from the outset and helped avoid duplicated documentation requests. This supported a more efficient application process through to completion. Crucially, the refinance was considered alongside the bridge. Before the short-term facility completed, we had identified suitable buy-to-let lenders that could potentially support the planned exit once the works had been completed and the property met the required criteria. This gave the client a clearer route away from the higher-cost short-term facility and ensured the initial borrowing was aligned with the wider investment strategy.

The Henry Dannell Difference

The strength of the case was in treating the acquisition and exit as one connected strategy. Rather than arranging bridging finance in isolation, we considered how the property could move from purchase, through modernisation, and into longer-term buy-to-let borrowing. Following the successful completion of the first purchase, the client went on to acquire a further three properties using the same bridge-to-let strategy. All three purchases completed successfully and the properties are now undergoing modernisation. For experienced property investors, short-term finance can be most effective when the exit is understood from the outset and the borrowing forms part of a wider, repeatable strategy. Bridging and buy-to-let lending are subject to individual circumstances, lender criteria and property suitability. Property may be repossessed if repayments are not maintained.