Case Study: How Somo solved a planning issue to complete a £400,000 bridging loan

Property transactions don't always follow a straightforward path. Historic planning matters, title discrepancies and unexpected valuation findings can all put pressure on completion deadlines, particularly when borrowers are relying on funding to secure onward purchases.

At Somo, our 360Promise is about looking beyond the headline issue and assessing every case on its own merits. That's exactly what happened on a recent £400,000 portfolio expansion loan.

The Challenge

Our client was an experienced landlord looking to expand their property portfolio, using three semi-detached buy-to-let properties in South Manchester as security for a six-month bridging loan.

During the valuation process, an issue emerged. One of the properties had previously been converted into two self-contained flats, but there was no evidence that the necessary planning consent had ever been obtained.

For many lenders, this could have meant delays while alternative security was sourced or further valuations were carried out, putting the borrower's onward purchases at risk.

Rather than viewing the planning issue as an automatic deal breaker, our underwriting team took the time to fully understand the circumstances.

The Deal

Working closely with the valuer and legal representatives, our underwriters reviewed the situation in detail to establish the level of risk and identify the most appropriate way forward.

The solution included implementing suitable legal protections, including an indemnity policy, allowing us to proceed with the original security package without compromising our underwriting standards.

The result was a £400,000 six-month bridging loan at 70% loan-to-value, delivered without the unnecessary delays that often accompany more complex property cases.

As Joe Cash, Senior Underwriter at Somo, explains:

"Not every property transaction fits neatly into a standard lending policy. 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."

The Outcome

Because we took a pragmatic, case-by-case approach, the borrower was able to complete their onward property purchases on schedule and continue growing their portfolio without disruption.

This case is a good example of how experienced underwriting and strong collaboration can overcome issues that might otherwise stall a transaction. Historic planning matters don't always require a deal to stop—they require careful assessment, the right expertise and a lender willing to work towards a practical solution.

At Somo, that's exactly what our 360Promise is designed to deliver: keeping complex cases moving while maintaining responsible lending standards.

Have a deal that isn't straightforward?

If you've got a complex case, speak to the Somo team. We'll assess it on its individual merits and work with you to find a way forward.

👉🏼 Speak to an expert.