Bridging lenders are stepping up to meet the complex needs of high-value property owners and developers, as evidenced by two significant transactions worth £2.9 million completed in Oxfordshire and Kensington. Specialist lender TAB has successfully facilitated these deals through its broker Prism Private Finance, showcasing the diverse applications of short-term finance in today's challenging market.
The first transaction saw a £1.855 million bridging loan secured against a five-bedroom country house near Hook Norton, Oxfordshire, which had initially been acquired using the borrower's own capital. The 12-month facility, structured at 70% loan-to-value, will allow the borrower to refinance and market the property over an extended period, providing flexibility for high-value assets that may require time to sell.
The second deal involved a £1.031 million bridging loan for a period townhouse in Kensington, configured into 20 self-contained units across five floors. The capital from this 24-month facility, set at 60.86% loan-to-value, will fund an extensive refurbishment programme to enhance the asset before bringing it to market.
Both deals were reportedly completed within five weeks of the initial enquiry, demonstrating the efficiency often sought in bridging finance. TAB's underwriting manager Barry Richardson and business development executive Becca Bradley oversaw the transactions. Michael Grant, head of sales at TAB, highlighted how these deals illustrate the breadth of their bridging solutions, accommodating varied borrower needs.
These transactions occur against a backdrop of ongoing pressures in the UK housing market, where property transactions can face delays or require flexible funding. Bridging finance is increasingly being utilised as a tool to provide this flexibility, offering a distinct advantage over traditional lending in specific scenarios.