Pallas Capital has completed a £525,000 bridging finance facility to support the acquisition and refurbishment of a residential property in North London.
The 12-month loan was structured at 75% loan-to-value and provides funding for both a lease extension and a programme of internal renovation works.
The transaction was led by Anna Thompson, originator at Pallas Capital, who worked with the borrower throughout the process as the structure of the deal evolved.
The property currently has 47 years remaining on its lease. Planned refurbishment works are intended to improve the asset and extend its long-term viability in an area where high-quality residential stock remains limited.
Bridging finance adapts to changing circumstances
Pallas Capital funded the transaction entirely from its own balance sheet, giving the lender flexibility when circumstances changed during the purchase process.
The original transaction encountered delays linked to third parties and valuation requirements, creating pressure on the completion timetable. To meet the purchase deadline, the experienced developer used their own funds to complete the acquisition.
In response, Pallas Capital verified the source of funds and restructured the transaction from a purchase bridge into a refinance bridging facility within the 10-day contractual completion period.
The revised structure enabled the borrower to preserve their planned exit strategy while securing funding for the next phase of the project.
“When unexpected third-party delays compressed the completion timeline, our priority was to step in pragmatically and give these experienced developers absolute certainty,” said Anna Thompson, bridging originator at Pallas Capital (pictured).
“By utilising our own internal funding lines, we were able to restructure the entire facility into a refinance bridge within days, ensuring the asset was protected.”
Broker James Lockyer supported the transaction and worked alongside the lender to navigate the requirements associated with the lease extension and refurbishment plans.
The completed facility highlights how bridging finance can be adapted during a transaction when circumstances change, particularly where developers face tight completion deadlines and complex property requirements.
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