£3.2 Million 2nd & 3rd Charge Bridging Loan to Unlock Portfolio Liquidity

The Scenario

The client, an experienced property investor, owned a substantial residential portfolio across London and the South East. Several properties were held on competitive long-term mortgage facilities arranged at favourable historic rates.

A new off-market development opportunity became available, requiring immediate capital of just over £3 million to secure the site and commence preliminary works. Refinancing the existing portfolio was not commercially viable due to early repayment charges and the loss of attractive interest rates.

The client required rapid access to liquidity while preserving the underlying senior debt structures.

The Challenge

The complexity lay in structuring additional borrowing without disrupting the existing first-charge lenders.

Key considerations included:

• Layering additional debt behind multiple first charge mortgages
• Maintaining acceptable combined loan-to-value ratios
• Coordinating legal agreements across several properties
• Completing within a compressed timeframe to secure the opportunity

Speed and structuring expertise were critical.

The Solution

We arranged a £3.2 million 2nd & 3rd-charge bridging loan, secured against three unencumbered equity-rich properties within the portfolio.

The facility was structured at a conservative blended LTV of circa 60% across the security pool, ensuring comfort for all parties involved. Careful coordination between solicitors, valuers, and existing lenders enabled consent and documentation to be finalised efficiently.

Funds were released within 18 days of instruction, allowing the client to secure the development site without disrupting their existing financing arrangements.

The loan was structured over a 12-month term, with a clearly defined exit strategy through the sale of completed units from the new development.

The Outcome

The client successfully acquired the development opportunity without refinancing core portfolio assets or incurring unnecessary penalties.

The 2nd and 3rd charge bridging structure provided strategic flexibility, preserved long-term lending arrangements, and unlocked dormant equity in a highly efficient manner.

This case highlights how layered bridging finance can serve as a powerful tool for experienced investors seeking growth without restructuring existing debt.