When the Lender Says No: £1.645m Refinance for a Converted London Mansion
- Emily Jackson
- 3 days ago
- 2 min read
Summary
Somo provided a £1,645,000 bridging loan at 70% loan-to-value (LTV) to refinance an expiring loan on a converted London mansion. The borrower required an additional nine months to market and sell the property after their existing lender declined to extend the term at the same interest rate.
Using Somo’s Standard Bridge product, the refinance was completed in 14 working days, repaying the outgoing lender and releasing £100,000 in additional capital for the borrower to continue work on other projects.
The Borrower’s Challenge
A property developer had recently purchased and converted a large mansion in London into an investment property intended for resale.
The project was nearing completion, but the borrower had reached the end of their existing bridging finance term and required additional time to market and sell the property.
Their current lender was unwilling to extend the loan at the same interest rate. As a result, the borrower needed a fast refinance solution that would:
repay the outgoing lender
provide sufficient time to sell the property
maintain competitive borrowing costs
The developer approached Somo to explore whether a refinance could be arranged on favourable terms.
The Property
The loan was secured against a converted London mansion that had recently undergone significant refurbishment.
The property served as the security for the loan and was intended to be sold once marketing was complete.
Loan Structure
Loan Amount | £1,645,000 |
Loan Type | Bridging Loan (Standard Bridge) |
Security | First Charge against property |
Loan to Value | 70% LTV |
Property Type | Converted London mansion |
Completion Time | 14 working days |
The Solution
Somo structured a £1,645,000 bridging loan secured by a first charge against the property at 70% LTV.
Through Somo’s Standard Bridge product, the team was able to offer the borrower a lower interest rate than their outgoing lender while arranging a fast refinance.
From the initial enquiry to completion, the loan was finalised in 14 working days, allowing the borrower to refinance the existing facility before it expired.
The Outcome
The refinance delivered several benefits for the borrower:
the outgoing lender was fully repaid
the borrower secured nine additional months to market and sell the property
£100,000 in additional capital was released for use on other development projects
the borrower recovered £2,000 in legal fees through Somo’s Free Legals promotion
The transaction allowed the borrower to maintain momentum across their wider development portfolio while providing sufficient time to achieve the best possible sale price for the property.
Considering Refinancing your Bridging Loan?
Refinancing an expiring bridging loan can provide additional time to market and sell a property, repay an outgoing lender, or release capital for other projects.
Somo Bridging Finance regularly works with property developers and investors who require fast refinance solutions, particularly when existing bridge loans are approaching the end of their term.
This type of facility may be suitable when:
an existing bridging loan is nearing expiry
a property requires additional time to sell
a developer needs to refinance quickly
Get in touch
If you’re approaching the end of a bridging loan term or exploring refinancing options, the Somo team can discuss potential solutions.
📞 0161 312 5656
Find your Regional Relationship Director today or explore our full range of bridging loan products.
