Providing a bridging loan to aid in the purchase of a countryside cottage in Stoke-On-Trent

Funded:

£640,000

Location:

North West

Property Type:

Residential

Funding:

Bridging Loan

The Project

Seneca were approached to provide a bridging loan to aid in the purchase of a countryside cottage in Stoke-On-Trent. The client, who has extensive experience in renovation and rentals, plans to conduct minor refurbishments on the property using their own funds. Their end goal is to turn the cottage into a holiday let.

The Approach

Despite the cottage being significantly down valued we worked closely with the borrower to restructure the agreement and reach a satisfactory outcome for all parties. Seneca were able to provide a facility of £640,000 to aid in the purchase of the property.

The Outcome

Following the provision of funds by Seneca our clients have been able to begin refurbishments on the cottage.

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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