A client approached us with plans to construct a new home in their garden. Their objective was to build the property, move in, and subsequently sell their existing home, which was valued at £2.1 million and had an outstanding mortgage of £300k. The financial requirement for the build was £850k, with a projected Gross Development Value (GDV) of £1.75 million.


The client faced several notable challenges:

• They had no prior experience in property development, which typically complicates securing funding due to perceived higher risks.
• Being retired, the clients had relatively low incomes, rendering traditional mortgage affordability assessments for the required loan amount unfeasible

Understanding the unique circumstances of this scenario, we secured a private banking solution on a bridging loan basis. This innovative approach allowed for the repayment of their current mortgage and fully funded the construction without the need for more costly development finance, which would have been significantly more expensive and less feasible for first-time developers. The loan was structured to be drawn in tranches, with interest payable only on the amounts drawn at any given time, easing the financial burden during the construction phase.

The solution we delivered was a £1,150,000 regulated bridging loan spread over 24 months at competitive market rates. This loan was secured against their existing home, allowing them to repay the current mortgage and fully fund the construction in stages. Interest was rolled over for the term of the loan, which meant that a traditional affordability assessment was not necessary. Moreover, while regulated bridging loans are typically capped at 12 months, the private bank’s offer of a 24-month term provided ample time for the clients to complete the build of their new property and facilitate the sale of their current home.

This case study exemplifies our ability to navigate complex financial needs with bespoke solutions, enabling clients to achieve their property ambitions without conventional financial constraints.