Key Details:
- Property value: Circa £4,000,000 residential property
- Facility: Circa £2,000,000 bridging loan
- Purpose: Repayment of expired private bank mortgage while allowing time to sell at full market value
In this case, the client was looking to sell and downsize. Their existing mortgage with a private bank had expired, meaning the loan needed to be repaid quickly.
However, with a slower property market, the client required additional time to secure the best possible sale price for his circa £4,000,000 property.
The transaction was further complicated by the client’s recent retirement, meaning there was no longer a regular income to support traditional mortgage affordability assessments. A flexible, time-efficient solution was therefore required to bridge the period between loan repayment and eventual sale.
Enness arranged a circa £2,000,000 bridging loan secured against the property, enabling the client to:
- Repay the expired private bank mortgage immediately
- Avoid rushed sale negotiations in a softer market
- Retain time to achieve full market value
To ease cashflow concerns:
- Interest was fully rolled up, meaning no monthly payments were required
- The outstanding balance plus rolled-up interest will be repaid from the eventual sale proceeds
- No early repayment charges, allowing full flexibility to redeem the facility as soon as the property sells, without penalty
The client now has full flexibility and control over the sale process, with the ability to market the property on their own terms. The bridging facility provided the necessary liquidity while preserving value and avoiding a forced or discounted sale.
If you are considering bridging finance or require short-term liquidity to support a property sale, early structuring can materially improve outcomes. Enness works with specialist lenders across high-value residential and complex private client transactions, advising on appropriate structures based on individual circumstances. To discuss your requirements or explore available options, speak to one of our specialist advisers.
