Client situation.
A broker introduced us to a client who was investing in a newly developed property comprising eight flats, to operate as holiday lets. The borrower needed financing to acquire the properties and build up trading accounts before securing a longer-term loan, with bridging representing a strategic interim solution. Holiday let businesses need time to establish track records before accessing traditional commercial funding, but they also need working capital during this crucial establishment phase.
Our solution.
We structured a £1.68 million facility at 64% LTV, agreeing a long enough term, so that the client had the finance they needed while the holiday let business established its trading history. While lenders sometimes struggle with appropriate valuations for new builds due to a lack of appropriate comparable properties, our trusted valuation partners confirmed the value of the property, and we were happy to agree the loan.
Result.
Nine days to completion provided the bridge financing needed, allowing the business to establish strong trading accounts for future refinancing. The borrower could focus on building their holiday let operation without financial pressure, ultimately positioning themselves for optimal longer-term financing. It’s a perfect example of how bridge lending can support business development and growth.
Holiday let developments? We understand the unique financing requirements of this specialised sector.