Pallas Capital has provided a \u00a3525,000 bridging finance facility for the acquisition and refurbishment of a residential property in North London, the lender has confirmed.<\/p>\n
The 12-month loan was structured at 75% loan-to-value and covers both a lease extension and internal renovation works. The property currently has 47 years remaining on its lease.<\/p>\n
The deal was initially structured as a purchase bridge but required restructuring when third-party delays affected the completion timeline. The borrower used personal funds to complete the acquisition, prompting Pallas Capital to convert the facility into a refinance bridge within a 10-day period.<\/p>\n
Anna Thompson, originator at Pallas Capital, said: \u201cWhen unexpected third-party delays compressed the completion timeline, our priority was to step in pragmatically and give these experienced developers absolute certainty. 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.\u201d<\/p>\n<\/p>\n
The lender funded the transaction from its own balance sheet, which allowed for flexibility when circumstances changed. Broker James Lockyer supported the transaction and worked with the lender on the lease extension and refurbishment requirements.<\/p>\n
Properties with lease terms below 80 years typically face valuation challenges and reduced marketability. The refurbishment works are intended to improve the asset in an area where residential stock availability is limited.<\/p>\n