Case Study: Somo completes £1.2m refinance to support property sale and business growth

Somo has completed a £1.2m first charge bridging 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 a property in Chelsea and completed through Somo Prime at a reduced rate of 0.75% per month.

The challenge

The borrower, a Spanish resident and experienced property investor, had reached the end of a six-year fixed-term facility with their existing lender.

While the Chelsea property was already being marketed for sale, 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 recently launched beach club business in 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 and was valued at £1.725m by an independent surveyor.

The solution

The facility enabled the borrower to refinance their existing lender while releasing additional capital for business purposes, including investment into their hospitality venture.

Despite the complexities of an overseas borrower, multiple uses of funds and a property that had been on the market for an extended period, Somo was able to take a pragmatic view of the asset, the exit strategy and the borrower's wider circumstances.

The outcome

The refinance delivered several key benefits for the borrower:

• It repaid their existing lender in full while releasing additional working capital to support their business.

• Crucially, it removed the pressure of having to accept a distressed or discounted sale, giving them time to maximise the property's value.

Somo structured a £1.2m first charge bridging loan and the deal was completed on Somo Prime pricing at a competitive rate of 0.75% per month, with a six-month term providing the breathing space needed to achieve the desired sale outcome.

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