Overview
| Client | Personal investor |
| Property | Unmodernised 3-bedroom terraced house |
| Value | £750,000 |
| Requirement | £210,000 for a full refurbishment, rear extension and loft conversion |
| GDV | £1.2million |
| Funding Secured | £250,000 bridging loan |
| Term | 12 months |
| Lender | MT Finance |
| Completion Time | Four weeks |
The Situation
An 82-year-old property investor approached us looking to raise capital against an unencumbered investment property
The property was a dated three-bedroom terraced house valued at £750,000. The plan was ambitious: a full refurbishment, a rear extension, and a loft conversion to create a five-bedroom property with a projected GDV of £1.2m.
The client required £210,000 upfront to fund the works and manage the project from start to finish.
While the asset was strong, client age and project scope meant the funding structure required careful consideration and navigation.
The Challenge
On paper, this could have been structured as a development loan.
However, development finance often involves staged drawdowns, monitoring costs and additional administration as works progress.
For this client, certainty of funds from day one was critical. The intention was to manage the project efficiently without waiting for phased releases.
The question was not whether funding could be arranged. It was how to structure it intelligently.
Our Approach
Rather than defaulting to development finance, we assessed whether the project could be structured as a bridging loan instead.
We reviewed:
- The property’s existing value and equity position
- The scope of works and projected uplift
- Exit strategy and timeframe
- Lender appetite in light of the client’s age
By positioning the project clearly and demonstrating a viable exit, we were able to secure a structure that delivered full funding upfront.
The Outcome
Completion achieved in 4 weeks.
The client had full control of the project from day one, reduced overall costs compared to a development finance loan, and retained flexibility through the 12-month term.
Takeaway
The right solution is not always the obvious one.
By structuring this as a bridging loan rather than development finance, we reduced cost, complexity and administrative burden while delivering the capital required upfront.
Structuring is not simply about securing funding. It is about aligning the facility with the client’s objective from the outset.
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