An experienced luxury property developer in Hertfordshire needed to refinance an existing facility and release equity for its next development opportunity.
The existing lender required repayment, while another lender was restricted to 65% LTV. Momenta Finance took a commercial view and provided the additional leverage required.
Facility: £1,000,000
Product: Bridging Finance
Term: 8 months
LTV: Approximately 73.6%
Rate: 1% per month
Exit Fee: None
Purpose: Refinance and equity release
Introducer: Keith Forster, Director, PF&D Ltd
Momenta Finance: Andrew Gagan, Sales Director – Real Estate, Momenta Finance
The borrower is an experienced luxury property developer based in Hertfordshire, with a strong track record in delivering high-quality residential properties.
The business specialises in the design and development of luxury homes, combining property development with a strong focus on design, quality and attention to detail.
The business needed to refinance its existing lender while releasing additional equity to support the purchase of its next development opportunity.
The security was a high-quality converted barn extending to approximately 2,441 sq. ft., together with a detached leisure building, double garage, landscaped gardens and private riverside frontage.
The challenge was achieving the level of leverage required. While another lender was willing to consider the transaction, its 65% LTV limit meant the business could not access sufficient capital.
For an experienced developer with another opportunity in sight, securing the additional equity was important to allow the business to move forward without delaying its plans.
Momenta Finance provided a £1 million bridging facility over 8 months at 1% per month with no exit fee.
The facility provided a £1 million Day 1 advance, refinancing the existing lender and releasing additional equity towards the business’s next purchase, at approximately 73.6% gross LTV.
By taking a commercial view of the transaction, Momenta Finance was able to provide the additional leverage required where a 65% LTV structure would not have been sufficient.
The completed facility allowed the business to refinance its existing borrowing while releasing additional equity towards its next development opportunity.
For experienced property developers, access to the right level of leverage can be critical when timing matters and a new acquisition opportunity needs to be secured.
The transaction demonstrates how a commercial approach to leverage can give experienced developers greater flexibility to refinance, release equity and move forward with their next opportunity.
The additional equity released through the facility will support the business’s next purchase, providing the capital needed to continue progressing its development pipeline.
This transaction is a strong example of how the right funding structure and a commercial approach can help experienced developers act on their next opportunity.
The key requirement for this transaction was a lender able to look beyond a standard 65% LTV structure and take the wider circumstances of the deal into consideration.
Momenta Finance was able to take a more commercial view of the security and the business’s experience, providing the additional leverage required to complete the refinance and equity release.
The deal was introduced by Keith Forster, Director at PF&D Ltd, who worked closely with the Momenta Finance team throughout the transaction.
“We were looking to secure a £1m bridging loan against a £1.5m Buy to Let for a long-standing developer client who needed a cash release to buy another development site.
After being let down by another lender who used some spurious excuse to reduce the net loan, we turned to Momenta who not only provided the loan required but extended their term by an extra two months to give the client sufficient time to exit.”
Have an experienced property developer looking to refinance, release equity or secure funding for their next opportunity?
Our real estate team takes a commercial approach to each transaction, looking beyond standard lending criteria to understand the wider opportunity.
Andrew Gagan:
andrew.gagan@momentafinance.co.uk
Steven Oliver:
steven.oliver@momentafinance.co.uk
Authorised and regulated by the Financial Conduct Authority. Firm reference number: 722951.
Merchant Money Limited, Trading as Momenta Finance, is authorised and regulated by the FCA in respect of our consumer credit activity. Our lending to limited companies, incorporated partnerships, and unincorporated partnerships of three or more is not regulated by the FCA. Registered in England (Co. No. 04504897) with registered office at 3rd Floor 86-90 Paul Street, London, England, EC2A 4NE. Registered as a data controller under the Data Protection Act 2018 with the ICO (registration Z303864X).
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