London investor secures £335,000 bridging loan for planning dispute
UKPulse Property Desk
A London property investor has secured a £335,000 bridging loan against a Dollis Hill buy-to-let property to settle a court-ordered liability from a planning enforcement dispute.
- The 24-month bridging loan was provided by TAB against a £1 million buy-to-let property in Dollis Hill.
- The investor needed the funds after losing an appeal against the London Borough of Barnet over an enforcement notice.
- The enforcement action concerned a property previously operated as three self-contained flats, now returned to a single residence.
A London-based property investor has obtained a £335,000 bridging loan to address a court-ordered liability. The loan, secured against an unencumbered buy-to-let property in Dollis Hill valued at £1 million, was provided by TAB with a loan-to-value ratio of 33.5%.
The investor, who owns eight rental properties, required the funds after an appeal against the London Borough of Barnet regarding a planning enforcement notice was unsuccessful. The enforcement action related to a separate buy-to-let property that had been operating as three self-contained flats and has since been converted back to a single residence.
The majority of the loan proceeds were used to settle the outstanding amount of a confiscation order. The borrower received £47,000 in net funds, which are intended for the maintenance of their wider property portfolio. The 24-month term of the facility is designed to allow time for portfolio management and longer-term refinancing.
Why this matters: The case highlights the financial risks associated with planning enforcement breaches for buy-to-let investors and the role of bridging finance in addressing time-sensitive financial obligations.
What this means for you: This case underscores the potential financial consequences of planning enforcement action for buy-to-let investors, demonstrating that while accessing equity can meet liabilities, the associated costs and refinancing needs add complexity to portfolio management.