Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment, and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

When the Lender Says No: £1.645m Refinance for a Converted London Mansion

Emily Jackson
Mar 27
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: