10-Day Bridging Loan Case Study

Client Background:

Our client, a property portfolio owner, sought to collaborate with family members to purchase a care home at auction. Initially, the family planned to raise funds independently. However, with only 10 days left to secure the necessary funds, it became clear that financial assistance would be required to complete the purchase.

Challenges Faced:

The client had won the care home at auction, giving them 28 days plus an additional 10 days to raise the funds and finalise the purchase. However, with only 10 days remaining, the client was determined to avoid the "plus ten" extension, leaving us with just 10 days to source and draw down the funds.
Given the tight timeline, the only viable option was a bridging loan. The bridging lenders required a valuation, and arranging this, along with receiving the report, within 10 days was a challenging task, especially with the property vendor involved.
After reviewing the client’s portfolio, we decided to raise the necessary funds against an unencumbered commercial property in their portfolio rather than the auctioned care home. This approach was chosen to bypass any complications that could arise from coordinating with the property's vendor.

How We Helped:

The client approached Key for assistance, and we immediately got to work contacting both lenders and surveyors. Our deep understanding of the market and lender requirements was crucial. Since most lenders require a property valuation, our challenge wasn’t just securing the loan within the required timeframe, but also ensuring that the survey and report were completed within the 10-day window.
After an extensive search, we identified a suitable lender. The surveyor was sent out the very next day to conduct the valuation, and the report was returned less than 48 hours later. This allowed us to proceed with the legal processes and application, keeping everything on track to meet the critical deadlines.

The Outcome:

We successfully secured the loan within 10 working days, enabling the client to complete the purchase within the original 28-day deadline. Following the purchase, we immediately began the process of refinancing onto a long-term loan, which was completed in under three months.
The bridging loan fulfilled its purpose as intended – a fast, short-term solution that allowed for a smooth transition to a longer-term financing facility.