Somo has completed a £1.2m bridging finance loan against a Chelsea buy-to-let property, enabling an overseas borrower to refinance an expiring facility, avoid a discounted sale and release capital to support a growing hospitality business in Spain.
The £1,207,500 loan was secured at 70% LTV against the property and completed through Somo Prime at a reduced rate of 0.75% per month.
The borrower, a Spanish resident and experienced property investor, had reached the end of a six-year fixed-term facility with their existing lender. The Chelsea property was already being marketed for sale, but the borrower was unwilling to accept offers below their target price and needed additional time to secure the right buyer.
At the same time, they required working capital to support a beach club business they had recently launched at a popular Spanish resort.
The borrower needed a solution that would:
- Repay the existing lender before the facility expired
- Avoid pressure to sell below market expectations
- Release capital for business purposes
- Complete quickly and on competitive terms
The property
The security was a Chelsea end-terrace property arranged as two self-contained flats and held under a single title, occupying a sought-after position in one of London's most desirable residential areas. An independent surveyor valued the property at £1.725m.
Somo structured a £1.2m first charge loan through its Somo Prime product. The facility allowed the borrower to refinance their existing lender while releasing additional capital for business purposes, including investment into their hospitality venture.
Rob Johnson, underwriting director at Somo (pictured), said the case reflected the flexibility bridging finance can offer when a sale doesn't go to plan. "Property sales don't always happen on a perfect timeline," he said.
"In this case, the borrower had significant equity in a quality Chelsea asset but needed additional time to achieve the right sale price. By taking a common-sense solutions-focused view, we were able to refinance the existing facility, release working capital and provide the flexibility needed to move forward with confidence."
If you’re exploring bridging or development finance, get in touch and we can connect you with the right lender.
