Utilising Bridging Finance to Cover the Final Stretch of a Property Purchase

case study permitted bridging loan last stretch

Loan Amount:
£550,000

Property Value:
£2,200,000

LTV:
25%

Property investors often utilise bridging loans to cover the bulk of a purchase. But sometimes, specialist finance may just be required to overcome the final hurdles of a deal. An investor, looking to purchase a residential property, planned to use their business funds and savings to pay for the majority of a property.

Funding was required from us to cover the shortfall. They planned to utilise the property for its rental potential. But, before the funds could be issued, our underwriter had to address a few issues.

Certain red flags emerged during the background checks, and we had to move quickly to find solutions.

Putting plans in place to address some red flags

When we began our background checks, we discovered some adverse credit in the client’s financial history. While this may have derailed an application with a high street bank, Market Financial Solutions prides itself on flexibility. We understand that few will have a perfect record to their name, and this shouldn’t halt their property investment plans.

Our underwriter addressed the adverse credit incidents and put a plan in place to overcome them so we could progress with the deal. Also, as we moved forward, we noted that some of the property certificates were not entirely up to scratch.

Again, rather than let this hold the borrower back, we created a strategy so this would be rectified swiftly, we did this by working with the borrower to organise new inspections of the property so that we could again move forwards.

With a solid exit strategy clearly in place, along with the previously mentioned assurances, we were happy to issue the funds.

Specialist finance can help with real economic circumstances

CCJ issues, bankruptcies, IVAs and the like are likely to have impacted many property investors in recent years. Covid-19 and its effect on the economy led many to fall behind on their bills.

What’s more, mainstream lenders are struggling to bounce back. Mortgage approvals fell to the lowest level seen since the start of the pandemic in late 2022.

It’s clear a lot of work needs to be done to restore confidence in the property market. Fortunately, while we’re facing an uphill struggle, specialist finance will be there to support property investors. From refurbishment loans through to developer exit bridging finance, there are plenty of options available to worried property investors.

FAQs

How can bridging finance help near the end of a project?

When a development or refurbishment project is nearing completion but requires funds for the final phase, such as snagging, landscaping, or compliance checks, bridging finance can fill the gap. In this case, we stepped in to provide the final tranche of funding, enabling the borrower to complete the project on time and meet exit milestones. This flexibility prevents delays or cost overruns that can arise as the finish nears.

Why is specialist bridging finance useful in the final stretch?

As projects near completion, traditional lenders often shift focus to exit criteria rather than funding structure. Specialist bridging loans fill the gap by providing fast, tailored finance that covers final touches and ensures compliance. Our expedited decision-making, in-house underwriting, and willingness to support short-term funding needs make us a reliable resource at critical project junctures.

What do you need to consider eligibility for this kind of funding?

To qualify, we assess the development’s progress, remaining works, and clear exit plan, typically a refinance or sale. We also review supporting documentation like contractor invoices, inspections, and certifications. If you can demonstrate that the project is near its final phase and that outstanding works are manageable, we can often release funds quickly to bridge the completion gap.