Can you refinance an existing short-term lender when a valuation falls short?
Yes. At Seneca Bridging, we specialise in overcoming complex underwriting hurdles by looking at the bigger picture, allowing us to deliver bespoke bridging loan facilities even when initial valuations don’t go to plan.
The Challenge
An active broker reached out directly to Paul in our sales team. Their clients required a gross £196,000 bridging loan to refinance an existing lender, proposing a first-priority legal charge over a property in Keswick.
However, the deal quickly hit two major roadblocks:
- Valuation Shortfall: The surveyor’s report on the Keswick property returned some challenges, threatening to stall the loan-to-value calculations.
- Redemption Spike: At the eleventh hour, the existing lender’s final redemption figure came in higher than anticipated.
The Seneca Solution
Where automated models fail, our human-led expertise provides flexibility. Instead of rejecting the application, our team collaborated closely with the broker to restructure the deal. To navigate the valuation issues, we accepted an equitable charge over an alternative asset in the borrower’s portfolio as additional security.
When the redemption figure escalated at the last minute, we refused to let it derail the deal and liaised with the broker to find the additional funds. Backed by Seneca’s 20 years of specialist lending experience, we maintained total transparency and momentum.
The Outcome
Undeterred by consecutive curveballs, we successfully completed the transaction just 4 weeks from the date solicitors were originally instructed. By utilising our flexible bridging loan products and secondary security structures, we secured the necessary capital to safely exit the client’s previous lender.