£360,500 bridge secured on director’s mother’s home

Somo has announced that it has completed a £360,500 first charge bridging loan for a property investment company, secured against the main residence of the director’s mother. The company approached Somo through broker Posfin Capital to raise funds for its next investment purchase.

The security was unusual. Rather than offering a property owned by the borrowing company or its director, the company proposed the home of the director’s mother, who is neither a director nor a shareholder. The borrower also had a Tier 3 credit profile. The proposed exit involved selling the property, so Somo needed clarity on where the owner would live afterwards.

The firm’s underwriting team assessed the strength of the property alongside the company’s borrowing requirement. The security is a three-bedroom residential property in Romford, independently valued at £515,000. Using its Valuation Only product, Somo structured the bridging loan as a £360,500 first charge facility at 70% LTV over 12 months.

Because a third party owned the security, Somo added safeguards, including independent legal advice for the owner and confirmation that she understood the transaction fully. The agreed exit involves marketing the property for sale about six months before the term ends, with alternative accommodation considered for the owner.

With the checks and legal requirements complete, Somo proceeded with the facility. The bridging loan completed within 37 days of the initial application.

“Not every bridging application fits a conventional structure, and this was a great example of why flexibility matters,” said Joe Cash, senior underwriter at Somo (pictured).

“The security was owned by the company director’s mother, so it was essential that she fully understood the arrangement and received independent legal advice. With the right safeguards in place and a clearly considered exit strategy, we were able to deliver the funding the business needed. It’s about finding solutions without compromising on responsible underwriting.”