"From the outset, we understood the borrower needed more than capital—they needed certainty, speed and a partner willing to work through complexity"
- Anna Thompson - Pallas Capital
Pallas Capital has completed a £1,275,000 bridging facility to refinance a residential development in Oxshott, marking one of its early transactions since launching in the UK in January.
The 12-month loan was structured at 75% LTV against a residential property and was led by Anna Thompson. The facility enabled the borrower to refinance both first and second charges while completing refurbishment works, with the exit strategy based on the sale of the property once finished and fully marketed.
The borrower, introduced by a long-standing broker partner, had faced unexpected disruption during the project. Mid-refurbishment works requested and funded by a previous buyer left the property stripped back and incomplete. When that buyer withdrew, the developer was left with an unmarketable asset alongside pressure from a second charge investor seeking repayment.
A bridging loan was identified as the most practical way to stabilise the position, complete the works to a suitable standard and return the property to the market.
During underwriting, several previously unknown issues emerged that placed the loan outside standard criteria. Rather than withdraw, Pallas worked with the borrower to resolve the matters while maintaining progress toward completion.
With deadlines approaching and investor pressure increasing, the lender structured a stepped rate solution. This allowed the loan to complete at an adjusted pricing level to reflect the added risk, with a planned reduction in rate once the outstanding issues are resolved, which is expected within weeks of completion.
Valuation also required a tailored approach. Because the property remained incomplete, its current market value came in lower than initially expected. To deliver the required net loan amount, Pallas advanced funds based on the value once refurbishment works are completed. The structure included defined deadlines for works and marketing to protect the exit strategy.
Key elements of the transaction included:
a 12-month bridging facility at 75% LTV
refinancing of both first and second charges
stepped pricing to reflect short-term risk
funding based on completed value rather than current condition
Throughout the process, the lender kept the borrower informed of the risks and structure, ensuring transparency at each stage.
The transaction required coordination across several parties, particularly the outgoing first charge lender and the second charge lender, which introduced additional legal complexity. Pallas managed these relationships alongside the borrower and broker to keep the timetable on track.
Special recognition was given to Matthew Stayt at Seddons for his role in progressing the deal through to completion.
Because the loan was funded from Pallas’ own capital lines, fund transfers were coordinated directly once legal matters were resolved, allowing completion to proceed without delay.
“This transaction is a strong example of how a well-structured bridging facility can provide stability in challenging circumstances,” said Anna Thompson, originator at Pallas Capital (pictured). “From the outset, we understood the borrower needed more than capital—they needed certainty, speed and a partner willing to work through complexity."
“By maintaining transparent communication and taking a pragmatic underwriting approach, we were able to structure a solution that addressed immediate pressures while supporting a clear path to exit."
“At Pallas Capital, we are focused on backing experienced borrowers and brokers with flexible capital and proactive management. Completing this facility demonstrates our ability to move decisively, manage risk responsibly, and deliver outcomes that protect all stakeholders.”
Pallas said it will continue working with both the broker and borrower throughout the term, supporting the completion of works, the pricing adjustment and the repayment of the loan on sale of the property.
