StreamBank delivers £2.6m regulated bridge to support Somerset property acquisition

StreamBank has completed a £2.61m regulated bridging loan to enable a borrower to acquire a neighbouring residential property in Somerset.

The 12-month facility allowed the borrower to purchase the substantial private residence, situated adjacent to their existing home, without being reliant on the timing of the sale of a separate residential property in London.

The loan was secured against both the newly acquired property and the borrower’s existing Somerset residence, with the two properties valued at approximately £4.3m in total.

The neighbouring property was purchased for £2.3m, while the borrower’s existing home was valued at £2m, resulting in an overall LTV of 61%.

The funding provided the borrower with the certainty required to complete the acquisition as soon as the adjoining property became available.

The family intends to relocate into the larger residence, while retaining flexibility over the timing of the sale of the London property.

The case was led by Lorenzo Satchell, national accounts director for property finance at StreamBank (pictured above), and introduced by Sanjay Lalji, mortgage adviser at Coreco.

The borrower’s financial profile was based on substantial trust assets and an established rental property portfolio rather than earned income, requiring the team to consider the borrower’s wider asset position when assessing the case.

The sale of the London property, valued at approximately £2.5m, forms the primary exit strategy for the facility.

Lorenzo commented: “This transaction shows why the assessment of a bridging case has to extend beyond a borrower’s monthly income.

“For clients with substantial wealth held through trusts, property or other assets, their financial position can be far stronger than a conventional income assessment might suggest.

“The key was understanding the strength of the borrower’s overall position and structuring the loan around a credible primary exit, with further assets providing an additional repayment route.

“The adjoining property represented a rare opportunity for the family, so the value of the bridge was in giving them control over the timing of the purchase rather than forcing it to depend on another property sale completing first.”

Sanjay added: “Cases involving high-value properties and more complex sources of wealth depend on the broker and lender having a clear understanding of what needs to be achieved from the start.

“Being able to discuss the detail directly with the StreamBank team meant we could establish early on how the case could be structured and what would be required to get it through to completion.”