Client Profile:
Our client, Helen and Rebecca, discovered a unique countryside property listed at £1.2 million. The site included:
- Three fully converted barns ready for immediate use as holiday lets.
- Three additional barns requiring full renovation, with plans to convert them into further high-end holiday accommodation.
- Four acres of land, offering long-term potential and added appeal to holiday guests.
The Objective
Despite having £120,000 in savings earmarked for renovations, Helen and Rebecca:
- Had no deposit available for the property purchase.
- Needed to act swiftly in a competitive market.
- Required a specialist lender capable of structuring a deal using their existing assets.
With a vision to build a premium holiday let business, they needed fast and flexible funding to secure the opportunity.
Our Solution
Creative Dual-Security Bridging Finance
- Step 1: Primary Bridging Loan – £720,000
We arranged an unregulated bridging loan covering 60% of the £1.2 million purchase price, secured against the subject property.
- Step 2: Secondary Bridging Loan – £480,000
To cover the remaining funds, we secured a second bridge loan against an unencumbered block of flats owned by the clients, valued at £1 million. This enabled them to proceed with no cash deposit.
Execution & Timeline
With funding in place, the property was successfully acquired. Renovations began immediately, with a completion timeline of 4–5 months for the three unconverted barns. The clients planned to use their personal savings of £120,000 to fund the works.
Exit Strategy: Refinance Based on GDV
Once completed, the development is projected to achieve a Gross Development Value (GDV) of £1.8 million. We have structured a plan to refinance onto a 75% loan-to-value term mortgage, releasing £1.35 million to:
- Repay both bridging loans, and
- Free up working capital for the clients to grow and optimise their holiday let venture.
The Result:
This project showcases Steel River’s expertise in:
- Structuring complex, asset-backed lending solutions
- Enabling acquisitions without upfront cash deposits
- Designing seamless refinance strategies to support long-term growth
Whether you’re a property investor, developer, or business owner, Steel River delivers intelligent financial solutions that help turn opportunity into success, why not try our bridging loan calculator to give you an estimate of costs?
If you’re looking for support on a regulated bridging loan, why not get in touch with our team?
