Funds required to capital raise against unencumbered land with planning permission

Funded:

£2,000,000

Property Type:

Commercial

Funding:

Bridging Loan

The Project

Our client required funds to capital raise against unencumbered land with planning permission, which was marketed for sale at £2,000,000. Our client required funds for business purposes.

The Approach

Time was of the essence in this deal and Seneca instructed its solicitors within 48 hours of the case being credit approved. Property and legal due diligence progressed quickly from the outset.

The Outcome

Seneca’s solicitors who were matched with a proactive firm of solicitors acting for the borrower, we completed the loan in less than 2 weeks of the case being approved. The client now has a 9 month loan term and intends to repay Seneca’s funding via sale of the land in due course.

Bridging Loans – Key Features

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  • Fast Decisions: Initial responses typically delivered within hours—perfect for time-sensitive situations like auction purchases.
  • Loan Size: £100,000 – £2.5 million.
  • Loan-to-Value (LTV): Up to 75% of the end value (Gross Development Value or market value), with flexibility available on a case-by-case basis.
  • Desktop valuations are available
  • Term: Usually up to 12 months, but occasionally longer if LTV can support it.
  • Interest Roll-Up: Interest can be “rolled up” and repaid at exit, easing cash-flow pressure during the loan term.
  • Interest Serviced: Interest can also be “serviced” allowing a larger day 1 cash drawdown (subject to serviceability).
  • Exit Strategy Required: Clear repayment strategy—such as sale or refinance—must be established at the outset.
  • Security: First legal charge on the property is required.
  • Transparent Costs: Arrangement fees typically start at 1%. No early repayment or exit fees, and no hidden admin charges.
  • Unregulated Product: these Bridging loans are not FCA-regulated, they are not available for owner-occupied residential properties.
Learn more about our Bridging Loans

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