Holme Finance Bridging Solutions (HFBS) went the extra mile over the Easter weekend to complete a time-critical refinance, helping clients avoid the pressure of an imminent bridging loan deadline and giving them the breathing space they needed to secure the right sale.
The clients had originally entered into a three-month bridging loan at the start of the year, when funds were needed urgently for business purposes. With no time to shop around, they relied on broker advice and accepted the funding that was available, despite the term being far shorter than was realistically suitable for their circumstances.
From the outset, the intention had been to replace the original loan quickly with a longer-term bridge that would provide enough time for the planned exit strategy: the sale of the clients’ home.
In the months that followed, the initial funds were used to stabilise urgent issues and ensure all business obligations could be maintained. The property was also placed on the market. However, as the redemption date on the original bridge drew closer, it became increasingly clear that a sale would not be achieved in time.
The existing lender was unwilling to renegotiate the terms or offer any form of extension, leaving the broker needing a fast and dependable solution for their clients. That solution came from HFBS.
After being approached to provide a longer-term alternative, HFBS moved quickly to assess the circumstances and obtain a redemption figure from the existing lender. No additional funds were required by the clients. The sole purpose of the new transaction was to redeem the existing bridge and provide the time needed to achieve a proper sale, without unnecessary pressure.
HFBS offered a net loan of £186,000 on a 12-month term, giving the clients the kind of realistic timescale they should arguably have had from the outset. With the original bridging loan due to be repaid this week, time was extremely tight. Demonstrating its hands-on approach and commitment to service, HFBS signed up the clients over the Easter weekend paying out the loan the very next morning.
The case also highlights a wider issue in the bridging market. While short-term finance can serve a purpose, a three-month term is rarely sufficient in real-world circumstances, especially where the exit depends on the sale of a distinctive property.
Dan Yendall-Collings, Director at HFBS said: “In this case, the home being sold is a particularly unique one: a beautiful property set in large grounds, described as the kind of “escape to the country” dream purchase many buyers aspire to own. But while highly desirable, properties of this nature often appeal to a narrower market, meaning they can take longer to sell than standard residential homes.
“By stepping in quickly and working through the Easter weekend, we were able to take away immediate pressure and replace it with a more practical, achievable solution. The deal is a strong example of how experience, flexibility and responsiveness can make all the difference when brokers need a lender who understands that timing is critical, but so too is realism.”