Somo completes £1.2m bridge loan to support Chelsea property refinance
Somo has completed a £1.2m bridging loan secured against a Chelsea buy-to-let property, allowing an overseas borrower to refinance an expiring facility, avoid a discounted sale and release capital for a hospitality business in Spain.
Somo has completed a £1.2m first charge bridging loan secured against a buy-to-let property in Chelsea, enabling an overseas borrower to refinance an expiring facility while releasing capital to support a growing business in Spain.
The £1,207,500 loan was provided through Somo Prime at a rate of 0.75% per month and represented 70% loan-to-value against a property independently valued at £1.725m. The security comprised an end-terrace property arranged as two self-contained flats under a single title.
The borrower, a Spanish resident and experienced property investor, had reached the end of a six-year fixed-term facility with their existing lender.
Although the property was already being marketed for sale, they wanted to avoid accepting offers below their target price while also releasing working capital to support a recently launched beach club business in Spain.
The facility repaid the existing lender in full, released additional capital for business purposes and gave the borrower a six-month term to continue marketing the property without pressure to complete a discounted sale.
Rob Johnson, underwriting director at Somo, said: “Property sales don’t always happen on a perfect timeline. In this case, the borrower had significant equity in a quality Chelsea asset but needed additional time to achieve the right sale price.
“By taking a common-sense solutions focussed view, we were able to refinance the existing facility, release working capital and provide the flexibility needed to move forward with confidence.”
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