Case Study –Bridging Loan for Fast Property Purchase with a Quick Completion and Seamless Exit Strategy

Value	£3,515,000
Loan Amount	£2,500,000
Location	Leeds
LTV	75%
Achieved Rate	0.70% per month
Completed	October 2022

The Client

A successful entrepreneur was facing significant pressure to source a finance solution which would enable him to complete a residential property purchase and satisfy the vendor. Despite having a standard mortgage application in progress for a standard residential purchase, the vendor was unwilling to wait for the underwriting and valuation process.

While our client’s business had grown significantly and demonstrated a 13x year-on-year profit increase, a trading history of only two years created challenges for the conventional lenders when aiming to support tight deadlines.

The Solution

This was a classic example of requiring bridging finance for a fast property purchase, when a standard route to mortgage is not viable given the fixed timeline. This entrepreneur needed an alternative solution that would accept two years of accounts and offer the full loan value within a short timeframe. We were able to source a bridging loan that allowed the client to complete within four weeks, while waiting for the underwriting and valuation to complete on the standard mortgage, as his exit strategy. By working closely with lending partners, we could: Leverage the client’s pre-existing valuation on the property and avoid further delays, streamlining the process and eliminating conveyancing bottlenecks. Ensure the client completed before the deadline, securing the property without compromise.

The Henry Dannell Difference

Our expertise in bridging loans enabled us to offer a solution that protected the client’s long-term financial goals. While the original mortgage application continued in the background, we ensured that our client was not disadvantaged by timing constraints beyond their control. Thinking creatively and moving quickly, we delivered a solution that enabled our client to move forward with confidence and avoid unnecessary delays.