Overview
A later life adviser recently introduced a case involving a couple in their 70s who required a refinancing solution at the end of term with their existing lender.
The clients owned a substantial main residence set within approximately 30 acres of land, and their repayment strategy was linked to the planned sale of their background investment assets. This created a number of structural challenges that meant traditional lenders were unable to assist.
Working with a specialist lender, we secured a £1.2 million regulated bridging facility with a 24-month term, providing the clients with the time required to align the sale of background investment assets, without time pressures, all whilst remaining in their home.
Client Profile
- Borrowers: Husband and wife in their 70s
- Property: Main residence set within approximately 30 acres of land
- Loan Type: Regulated bridging facility
- Loan Amount: £1.2 million
- Term: 24 months
- Referral Source: Later life adviser
The clients owned a successful business which was based on land valued in excess of £6m, capable of being separated from the operating business. The planned land sale would ultimately provide the repayment route for the bridge.
Client Objectives
- Refinance their existing lender at end of term
- Remain in their family home rather than sell the property to repay the debt
- Allow time to complete a planned sale of background assets, which would provide the repayment strategy
- Secure a regulated solution in excess of 12 months that provides greater flexibility than traditional short-term lending
The Challenge
Several factors meant the case fell outside standard lending appetite.
- The property itself was a large residential estate sitting within approximately 30 acres, which can trigger agricultural lending considerations and create concerns around the property’s legal demise. Many lenders are reluctant to secure regulated debt against properties with significant acreage.
- In addition, the property valuation was lower than expected due to the complexity of the estate and refurbishment requirements, further restricting traditional lending options.
- The repayment strategy also required lenders to look beyond a typical property sale. Instead, the loan would be repaid following the future sale of the clients’ other assets, introducing an additional layer of complexity.
- Finally, regulated bridging facilities are typically limited to 12 months, yet the clients required additional time to realise preferred sales without increased time pressures.
The Outcome
We sourced a specialist lender comfortable with regulated bridging structures and longer terms, enabling us to arrange a facility that aligned with the clients’ objectives.
The final structure delivered:
- £1.2 million regulated bridging loan
- 24-month term, significantly longer than standard regulated bridging facilities
- Security against the clients’ main residence and surrounding acreage
To strengthen the lender’s position, independent valuation evidence was obtained on the land owned by the clients’ business, demonstrating a broader asset base to qualify the clients’ HNW status, which supported the overall risk profile of the transaction.
For professional advisers, this case illustrates how specialist lending structures can unlock solutions where property characteristics, client objectives and repayment strategies fall outside traditional lending frameworks.
This case study is provided for illustrative purposes only and does not constitute financial advice. Lending is subject to status, underwriting and lender criteria. Terms, rates and structures vary depending on individual circumstances and market conditions. Property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it. Regulated bridging finance is a specialist product and may not be suitable for all borrowers. Professional advice should be sought before entering into any financial arrangement. Henry Dannell is a credit broker, not a lender.
