Our Private Finance team was approached by clients facing an urgent refinancing challenge on their primary residence, a substantial Grade II listed estate in Bedfordshire.
With just two months remaining on an existing bridging facility, the clients were at risk of lender enforcement if the loan was not repaid.
Their objective was simple: buy time to sell the property and avoid repossession.
The situation required immediate action, with limited time remaining before the risk of enforcement.
The Property
- Seven/eight-bedroom Grade II listed period residence
- Set within approximately 3+ acres with additional outbuildings
- Market value: circa £1.8 million
- Actively marketed for sale
The Situation
- Existing bridge facility nearing expiry (10 months into a 12-month term)
- No sale achieved despite being on the market
- Complex public profile adding further lender sensitivity
Without intervention, the clients were two months away from potential repossession.
The Challenge
This was a highly constrained lending scenario:
- Complex and public borrower profile: Required careful lender positioning and discretion
- Income could not be relied upon for traditional affordability assessment
- Time-sensitive transaction: Completion required prior to expiry of the existing facility
- Exit dependency: Repayment reliant on the sale of the property in current market conditions
- Loan size and asset profile: ~£1.2M against a high-value, non-standard residential property
Many lenders were unable to accommodate the structure or required timeframe.
The Solution
Our Private Finance team sourced and structured a new regulated bridging facility, working closely with both the incoming lender and the incumbent lender to ensure a smooth transition.
Key elements of the structure:
- Loan Amount: ~£1.2M
- Approx. 70% loan-to-value (LTV) based on gross facility, supported by available equity
- Term: 12 months
- Interest Structure: Fully retained (no monthly servicing required)
- Rate: Fixed for the duration of the facility
- Exit Strategy: Sale of the property
Crucially, the facility was structured without reliance on income for servicing, with retained interest meaning no monthly payments were required during the term.
As outlined in the suitability assessment, the structure was designed to align with the client’s sale timeline without reliance on ongoing earnings.
GSB also worked directly with the existing lender to:
- Provide confidence around the refinancing strategy
- Demonstrate a credible exit via sale
- Support a credible pathway for the facility to be repaid in full within the extended timeframe
The Outcome
- Risk of lender enforcement mitigated
- Existing bridge facility successfully refinanced
- Clients secured an additional 12-month period to complete the sale of the property
- No requirement for monthly repayments during the term
- Lending primarily structured around asset value and exit strategy, rather than traditional income metrics
Key Takeaway
In time-sensitive situations, the difference is rarely access to a lender.
It’s the ability to structure a deal quickly, position the risk correctly, and align all parties under pressure.
Speak to our Private Finance team
If you are a professional client approaching the expiry of an existing facility, navigating a time-sensitive refinance, or require a lending solution aligned to your wider financial position, our team can help.
Contact GSB today if you would like to discuss any of these matters with our in-house team.
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Disclaimer
This case study is provided for information purposes only and is intended for professional clients. It does not constitute financial advice, an offer, or a recommendation to enter into any transaction.
All lending and financing solutions are subject to individual circumstances, lender criteria, and approval. The structure and outcome described in this case study are specific to the client’s situation at the time and may not be achievable or suitable in other cases.
Bridging finance is a short-term and higher-cost borrowing solution designed for specific circumstances. It carries risks, including the potential loss of property if obligations are not met.
Any reference to property values, loan terms or outcomes reflects market conditions at the time of the transaction and should not be relied upon as an indication of future performance or results.
This material is not intended for retail clients.
GSB Capital Ltd is regulated by the Dubai Financial Services Authority (DFSA) under licence number F006321.