HFBS were approach by customer with a bungalow project that was already well underway but with an existing bridging loan reaching maturity, and the risk of costly default penalties, a re-bridge was required urgently to complete the project.
A couple of years earlier, the client had purchased a plot of land for £60,000 and secured full planning permission for a detached bungalow. He began the build using a Together bridging loan and, as an experienced professional builder, completed the bulk of the work himself moving the project rapidly towards a market-ready finish.
With just £30,000 of funding, he got the property wind and watertight, with dry lining, electrics, and plumbing all completed. His initial exit strategy was to sell the property quickly, offering it to the market with the kitchen and bathroom specification to be chosen by the buyer.
Despite being marketed for sale, the property wasn’t attracting as many viewings as hoped. The selling agent’s feedback was clear; many buyers needed a working kitchen and bathroom in place so the property could be mortgageable. Meaning a wider buyer pool and a smoother sale.
At the same time, the Together loan was due for repayment, and default penalties were a real risk if the deadline was missed.
Dan Yendall-Collings, Director at HFBS said: “With our quick response, practical experience and a site-led approach, we put a workable solution in place to keep the project moving, maximise saleability and support a stronger end value. Our solution was to restart the clock with a fresh 12-month term, and release an additional £13,000 to fit a kitchen and bathroom, enabling the home to be signed off as completed, with full warranty in place and ready for a buyer to purchase with a mortgage.”
HFBS delivered a first charge bridging loan of £52,795, which cleared the existing Together account, and provided the breathing space (and funds) to complete the final essentials that would make the property far more marketable. This was completed against a current estimated valuation of £250,000, with an expected end valuation in the region of £300,000.
Dan adds: “Because the project was local, we were able to visit site, verify progress, and confirm everything was as expected helping keep the process efficient and grounded.”
HFBS offered at 1.29% per month and completed by the date the Together account was due, avoiding default penalties and giving the client the runway required to see the project through to a successful, mortgage-ready, finish.
Deal snapshot
Loan type: First charge bridging
Advance: £52,795
Rate: 1.29% per month
Purpose: Refinance existing bridge + release funds to complete kitchen & bathroom
Valuation: £250,000 current / £300,000 end value estimate
Outcome: Completed before maturity to avoid default penalties; enabled mortgageable finish and stronger exit potential.