Specialist lender Glenhawk has provided a £1.9 million regulated bridging loan secured against a converted barn in Watford, allowing the borrower additional time to market the property.
The facility was arranged at 66% loan-to-value and refinanced both a first and second charge on the residential property. The borrower had previously taken out the second charge to fund refurbishment works on the barn.
Market conditions drive demand
The property was already listed for sale when the borrower approached Glenhawk for finance. The bridging loan enabled the borrower to continue marketing the barn at an asking price above its current valuation, rather than accepting a quicker sale at a lower price point.
Ryan Brewer, business development manager at Glenhawk, noted that the lender is observing increased demand for sales bridges. “In a market typified by a lack of confidence and a slower sale pace, we are seeing an increase in sales bridges where borrowers need more time to market and sell their properties,” Brewer said.
The trend reflects broader challenges in the property market, where due diligence processes and economic uncertainty have extended transaction timelines. This follows recent data showing an 11.6% rise in County Court Judgments, indicating tightening financial conditions across the property sector.
Transaction details
Happy Brokers introduced the regulated bridging loan, with Brewer originating the facility at Glenhawk. Underwriter Ruth Griggs and case manager Rhiannon Kenny managed the transaction through to completion.
Paul Lefevre, director at Happy Brokers, commented on the transaction: “Glenhawk were excellent to work with on this complicated regulated refinance. On larger and more complex transactions, communication, flexibility and certainty of delivery are absolutely key.”
The case highlights the role of bridging finance in providing short-term liquidity for property owners navigating slower market conditions, particularly those seeking to maximise sale prices rather than accept discounted offers for faster completions.
