A borrower required a bridging loan to purchase a portfolio of 24 assets, to transfer to their partner as part of their divorce settlement. We were able to provide an £8.2m facility, but this deal was not without its challenges, some of which included multiple charges, noncompliant works, missing documentation, and needing £900k cash out on day one.
What we looked at differently
The underlying assets were strong. Well-located freehold properties across North, North West and West London. The leverage, while at the top end, could be reduced during the term as corrective works increased values, and the client had professional support lined up.
We focused on structuring the transaction to protect all parties and ensure a clean transfer.
Managing multi-party dynamics
With vendor and purchaser communicating through their respective professional teams, coordination was critical. We established regular all-parties calls to keep everyone updated, aligned, and aware of their responsibilities. The vendor obtained independent legal advice and provided written confirmation of his understanding and satisfaction with the transaction.
Unwinding the charge structure
Multiple lenders with first, second, and third charges required a clear redemption strategy. We mapped every charge and structured day 1 funds to cleanly redeem all existing debt, giving the client a single lender and a fresh start.
Addressing compliance and third-party interests
Several properties had been altered without consent. We built specific conditions into the facility with clear deadlines for remediation to support the client in bringing properties back to lawful use. Some freeholds were also jointly owned by the vendor and his brother, so we obtained third-party legal charges from the brother to strengthen our security position.
The Outcome
We provided a £8.2m bridging facility at 75% LTV over a 12 month term, enabling the transfer of 24 properties into newly formed SPVs. The client has a refinance already in progress, and a managing agent in place to professionalise the portfolio.
This deal was delivered by Theo Goodman, Dan Margolis and Sophia Panteli.
Testimonials
Theo Goodman, Credit Manager, and Justin Trowse, Managing Director at Mortimer Street Capital shared a few words about their experience working on this case.
"This was a transaction that required careful structuring from the outset, with multiple SPVs, gifted equity, and a day 1 capital release all forming part of a single coordinated completion. Our ability to assess the portfolio holistically and tailor the facility around the client's specific needs is what made this possible. It's a great example of what we can deliver on larger, more complex transactions, and it was a pleasure working alongside Justin and the Mortimer Street Capital team to get this over the line.” - Theo Goodman, Credit Manager
“This transaction further reinforces our team’s strong track record in delivering bespoke finance solutions for clients with complex requirements. “I’d like to personally thank Theo Goodman at Lendhub and the supporting legal teams for their hard work in getting this transaction over the line" - Justin Trowse, Managing Director at Mortimer Street Capital
