Re-bridge exit – 33 Residential Units – Multi-Asset Portfolio

A UK-registered borrower, ultimately owned by an overseas entity, required a £4m facility to refinance an existing bridging loan that had reached term. The objective was to stabilise the position and provide sufficient time to execute an orderly unit-by-unit sales strategy across a multi-asset residential portfolio in the North of England.

The Challenge

• Existing bridge at term with immediate refinance pressure
• Portfolio across multiple locations requiring break-up valuation rather than block
• Overseas ownership structure limiting lender appetite
• High leverage requirement at 74% LTV
• Re-bridge scenario, typically restricted by lenders
• Need to maximise net loan proceeds to fully redeem existing debt

The Solution

We restructured the opportunity and introduced a specialist lender able to underwrite both the borrower profile and asset strategy.

Crucially, the facility was structured using a combination of retained and serviced interest, allowing the loan quantum to be optimised and ensuring sufficient net proceeds to fully repay the existing bridge.

The lender was comfortable with:

• Overseas ownership structures
• Break-up valuation approach
• Higher leverage re-bridge scenarios

Legal indemnities were also utilised to streamline underwriting and accelerate completion.

Key Deal Highlights

• Loan Amount: £4,000,000
• LTV: 74% (on break-up value)
• Rate: 0.89% pcm
• Term: 12 months
• Asset: 33 residential flats across 4 assets
• Location: North of England
• Structure: Re-bridge facility
• Interest: Combination of retained and serviced
• Exit: Unit-by-unit sales programme
• Execution: Completed within 4 weeks

Outcome

The refinance was delivered within a tight timeframe, enabling full redemption of the existing lender and providing the borrower with a stable platform to execute a phased disposal strategy.

Why This Worked

• Correct lender with appetite for overseas borrowers and complex structures
• Flexibility to structure retained vs serviced interest to maximise net proceeds
• Acceptance of break-up valuation over block value
• Clear and credible unit sales exit strategy
• Pragmatic approach using legal indemnities to mitigate risk