A debt-free homeowner wanted to raise capital for property investment and construct their dream home, requiring both short-term bridging finance and a self-build mortgage. We secured both facilities rapidly, allowing the clients to acquire the site without delay.
The Challenge
The clients encountered several obstacles in securing the desired borrowing:
- Time-Sensitive Land Purchase: The clients needed to act quickly to acquire the land, necessitating rapid access to short-term bridging finance.
- Raising Capital: The clients needed to remortgage to release equity in the UK from their existing, debt-free property (valued at £850,000) to fund the £750,000 land purchase alongside their savings.
- Specialist Product Requirement: A self-build mortgage is highly specialised, and only a few lenders support both the short-term bridging and the construction stages.
The Strategy
To structure a deal that met the clients’ needs, we leveraged our network of specialist lenders:
- Bridging Finance Alignment: We arranged a bridging loan at 75% LTV on the client’s existing property to secure the land acquisition within the required time frame.
- Self-Build Facility: We sourced and positioned the case with a specialist lender capable of providing the £450,000 self-build loan for the construction phase.
- Exit Strategy Coordination: We clearly structured the application using the future sale of the existing property as the exit strategy for the bridging loan.
The Results
- Current Property Value: £850,000
- Bridging Loan LTV: 75%
- Self-Build Loan Amount: £450,000
- Land Purchase Price: £750,000
- Key Outcome: The clients secured both the bridge and the self-build mortgage, allowing them to purchase the land and begin construction immediately.
Why This Matters
For clients looking to self-build or raise capital for property investment, mainstream high-street lenders often lack the flexibility to handle multi-stage funding. Securing both a bridging loan and a self-build facility ensures a smooth transition between acquiring the land and completing the build.
Speak to a Specialist
Ready to explore your options for a bridging loan or a self-build mortgage? Book a consultation with our team today.