Bridging finance lender Somo has completed a £400,000 loan that enabled a landlord to expand their property portfolio, after finding a pragmatic solution to a planning issue that could otherwise have delayed the transaction.
Somo provided the six-month facility, part of its Low Rate Plus range, at 70% loan-to-value. The lender secured the loan against three semi-detached buy-to-let properties in South Manchester.
During underwriting, a valuation showed that one of the security properties had previously been converted into two self-contained flats, with no evidence of the necessary planning consent.
Rather than requesting replacement security or delaying completion while further valuations were carried out, Somo's underwriting team worked closely with the valuer and legal representatives to understand the circumstances fully and put appropriate legal protections in place, including an indemnity policy.
This approach allowed the lender to proceed with the original security package while keeping the bridging finance transaction compliant and responsibly underwritten. As a result, the borrower completed their onward property purchases on time and continued expanding their portfolio without disruption.
"Not every property transaction fits neatly into a standard lending policy," said Joe Cash, senior underwriter at Somo.
"Our role is to understand the whole picture and assess each case on its individual merits, we call this our 360Promise. By working collaboratively with the valuer and solicitors, we were able to structure a solution that appropriately managed the risk while helping the borrower meet a critical deadline."
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