CASE STUDY
We are thrilled to share another case study about the successful development bridging loan, which produced a fantastic outcome for our client who inherited a property development in financial mismanagement.
At least 12% of all bridging loans are used for financial difficulty. Property Development projects are no exception to this, often encountering unforeseen obstacles. This case was no different. Our client inherited the development, only to discover a series of problems caused by poor decisions from the previous management.
Mismanagement left the project in financial difficulty, resulting in half-built units, insufficient funds to finish said units, and an incumbent lender unwilling to provide further financing to complete it. Our client came to us desperate for a solution.
Tailoring Development Bridging Finance To Meet Client Needs
After reviewing our client’s situation and the development project, we identified the critical need: finding a lender willing to re-evaluate the project based on the future Gross development value.
Directly sourcing a new lender would have been extremely difficult for our client. However, we could leverage the strong industry relationships that have been built throughout years of arranging commercial bridging loans for property developers. We could identify and secure funding from a lender who would be open to reassessing the project. An initial assessment led to the offer of development bridging finance designed specifically for this scenario, a Heavy Refurbishment Bridging Loan.
The Heavy Refurbishment Bridge Loan provided the project with the necessary funds to complete the original five units and unlock further possibilities. The loan structure enabled the strategic sale of one unit, generating additional cash flow.
Through Henry Dannell’s presentation of a clear vision and a well-structured plan, we demonstrated the project’s true potential to the lender.
Matt Karagul, Specialist Finance Adviser at Henry Dannell, comments: “This case study demonstrates the power of strategic financial solutions and the importance of utilising a financial adviser with strong industry relationships. What initially appeared as an insurmountable challenge transformed into a resounding success story. By using a Heavy Refurbishment Bridging Loan and our expertise, the development was not only completed but also positioned for a profitable future.”
Facing similar challenges with your development project? Contact Henry Dannell today for a consultation and discover how we can help you transform your project.
This is a case study and not indicative of typical results. Past performance is not necessarily representative of future results. This information is for general purposes only and does not constitute financial advice. Please seek professional advice before making any financial decisions.
Please note: a bridging loan is a short-term loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any debt secured on it. The Financial Conduct Authority does not regulate some forms of bridging finance. Bridging finance / loan deals may not be available and lending is subject to individual circumstances and status.
