Regulated Bridging Loan Case Study: Restructuring £2M+ Property Debt Ahead of Sale
Written by Michael Minnie
In a dynamic property market, access to flexible capital is key to restructuring debt and optimising investments. Bridging finance continues to empower experienced developers and property owners to act strategically, whether consolidating expensive loans, funding final property works, or unlocking tied-up equity.
For borrowers navigating high-cost existing charges or awaiting a property sale, a regulated bridging loan offers a clear solution.
This type of facility is tailored to bridge financial gaps between critical transitions; from refinancing costly second charges and clearing contractors’ invoices to finishing minor works while securing a buyer.
At LendInvest, our regulated bridging solutions may be able to provide fast, practical funding to keep residential projects moving forward.
Case Study: Consolidating Complex Debt on a High-Value Asset
We were approached by an introducer seeking to assist his client in consolidating high-cost debt and releasing capital against a high-value residential property.
The security property was a substantial, high-spec residential home valued at £3,000,000. Although previously let as a Buy-to-Let and currently vacant following major refurbishment works, the case fell under regulated bridging guidelines..
The client was carrying a complex and expensive capital structure: a primary residential mortgage alongside a second-charge bridging facility with another lender (at 1.25% per month) that had been used to fund works. With the refurbishment now complete and the property listed on the market for sale, the client needed a streamlined facility to reduce monthly interest costs, fund minor snagging, and settle outstanding contractor invoices while marketing the property.
Our underwriting team took a supportive, pragmatic approach to structure a first-charge regulated bridging loan. We provided a gross loan of £2,250,000 (representing a 74.99% LTV) at 0.89% per month with 12 months of rolled interest and a 1.00% arrangement fee, delivering a net loan of £2,002,988.61.
Although the property had not yet received formal offers, the valuer projected a sale timeframe of roughly nine months—fitting comfortably within our 12-month loan term. By replacing the high-cost second charge and primary mortgage with a single lower-rate facility, we significantly reduced the borrower’s cost of capital and provided the flexibility needed to secure a sale without pressure.
Regulated bridging, simplified:
- Rates starting from 0.82%
- Up to 75% LTV (loans up to £1 million)
- Dual representation: one solicitor for both parties, saving time and money
Building income, building homes
LendInvest plc is a public limited company registered in England and Wales (No. 8146929). Registered
Office: 4-8 Maple Street, London, W1T 5HD.
LendInvest Mortgages and LI Mortgages are registered trading names of LendInvest Loans Limited. LendInvest Loans Limited is authorised and regulated by the Financial Conduct Authority (FRN:737073). LendInvest Loans Limited is a company registered in England & Wales (Company No. 09971600) and is a wholly owned subsidiary of LendInvest plc.
Regulated lending is provided via LendInvest Loans Limited (Company No. 09971600). Unregulated lending is provided by LendInvest BTL Limited (Company No. 10845703) and LendInvest Bridge Limited (Company No. 11651573), which are wholly owned subsidiaries of LendInvest plc.
Borrowing through LendInvest and its affiliates involves entering into a mortgage contract secured against property. Your property may be repossessed if you do not repay your mortgage in full.