High Value Residential Bridging Loans
Residential bridging facilities from £1 million for prime property acquisitions, refinancing and capital release.
Substantial homes and complex ownership structures require a lender whose valuation approach, legal requirements and credit appetite suit the transaction. Aura Capital assesses these considerations at the outset and holds discreet preliminary discussions with appropriate lenders before recommending a funding route.
Rates from 0.53% per month on qualifying cases. Facilities of £10 million and above considered individually.
- Facilities
- From £1 million. £10 million and above considered individually
- Pricing
- From 0.53% per month on qualifying cases, subject to underwriting, valuation and legal due diligence
- Transactions
- Acquisition, refinancing, capital release and refurbishment
- Security
- Prime, country and complex residential property, usually by first charge
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On this page
Why lender selection matters
A bridging loan is short-term finance secured on property, repaid from a sale, a refinance or another defined event. At this level, the lender's capacity to advance the sum is only the starting point. The lender must also accept the security, instruct a valuation suited to the property, be comfortable with the title and ownership structure, and have the appetite to complete within the required timetable.
Lenders differ considerably on these points. One may be at ease with a Grade II listed country house on twenty acres and cautious about a leasehold apartment in a new development. Another may take the opposite view. Establishing which lenders are genuinely supportive before valuation and legal costs are incurred is commercially important, because those costs are largely committed once a lender is instructed.
Assessment before commitment
Before recommending a lender, we review the property, the ownership, existing debt, the net advance required, the timetable and the repayment strategy. That allows us to establish in advance which lenders accept the security type, the likely leverage range, the approach to valuation and the principal legal requirements. Valuation, title, the borrower's circumstances and the lender's credit decision remain subject to formal due diligence, and the terms can change as a result.
Relevant lender appetite
We look for lenders with relevant experience of the asset, credit appetite for the borrower and structure, funding capacity at the required size, and valuation and legal requirements that are realistic for the property. A lender that meets three of those tests but not the fourth can still delay or derail a transaction, which is why we consider them together.
Early assessment of material issues
Some matters can be identified from the outset: restrictive covenants on the title, an existing charge that needs consent, a leasehold term that affects saleability or an ownership structure that requires additional legal work. Raising these early allows them to be put to lenders directly. Others only emerge during valuation or legal review, so early assessment reduces the risk without removing it.
Comparison on substance
Where more than one lender is suitable, we compare the structure, net advance, total cost, conditions and execution requirements. The lowest headline rate is not always the most suitable offer if the net advance is lower or the conditions are more onerous.
Coordination
We coordinate progression with the lender, valuer and legal advisers, with attention to material conditions and the completion timetable.
Establishing lender appetite before progressing
For larger and more complex proposals, we discuss the case with selected lenders before you commit to an application. The process has four stages.
Understanding the transaction
We establish the property, ownership, existing debt, required proceeds, timetable and repayment strategy, and identify anything a lender is likely to examine closely.
Preparing the proposal
We prepare a focused summary of the proposal and its material considerations, setting out the security, the structure and the evidence for the exit.
Discreet lender discussions
We discuss the proposal with selected lenders, initially without identifying details where that is appropriate and feasible. Identifying information is shared only with your authority. Some properties and circumstances are identifiable from their description alone, in which case we agree with you in advance what is disclosed and to whom.
Recommendation
We explain the proposed route, the indicative economics, the outstanding conditions and the next steps, so that you can decide whether to proceed to a formal application.
Preliminary support from a lender indicates appetite. It is not a formal commitment. Any facility remains subject to the lender's underwriting, valuation and legal due diligence.
Finance for prime and complex residential property
Many high-value homes are straightforward to finance. Others have features that narrow the range of suitable lenders or change how a lender approaches valuation and legal work. Not every point below applies to every property. Where one does, it affects the funding proposal in a specific way.
Country houses and estates
Ancillary accommodation, cottages, equestrian facilities, farmland or a commercial element such as a let barn or holiday lets may sit within the same title. Lenders differ on whether they value and lend against the whole, or only the principal house and a defined area of land. That decision can change the available advance materially.
Listed buildings and planning constraints
Listing and conservation area status restrict alterations and can affect repair costs and marketability. Lenders will want a valuer familiar with the type of property and may ask about the history of works and consents. An unresolved planning matter generally needs to be addressed in the legal work. Our published Grade II listed refinance sets out how one such case was handled.
Prime London apartments
For leasehold apartments, the unexpired lease term, ground rent provisions, service charges and the building's management and fire-safety position can all affect lender acceptance. Some lenders apply minimum lease terms or specific requirements for certain building types.
Unusual architecture, acreage or limited comparables
Where there are few directly comparable sales, the valuation carries more judgement and lenders often apply more caution to leverage. An appropriate valuation instruction, and a valuer with relevant experience, matter more than usual in these cases.
Refurbishment and incomplete works
A property undergoing works, or awaiting completion, may be valued in its current condition. Lenders will consider the scope of works, the cost, the contractor and whether a sale or refinance is achievable on completion. See refurbishment bridging.
Title, access and existing security
Multiple titles, rights of way, restrictions and existing charges all require legal attention. Where an existing lender is to remain in place, its consent may be needed for second charge lending.
Company, trust and overseas ownership
Ownership through a UK company, a trust or an overseas entity is accepted by selected lenders. It typically involves additional due diligence on the structure, beneficial ownership and source of wealth, and legal advisers who are familiar with the arrangement.
In each case, the lender must accept the security, instruct an appropriate valuation, be satisfied with the title and legal structure, and take a view on marketability and the repayment strategy. Matching the property to lenders that are comfortable with those points is the core of our work.
Experience and evidence
Harry Baker
High-value residential enquiries are reviewed by Harry Baker. Before Aura Capital, Harry's career included property finance underwriting experience with a specialist finance business. That earlier experience relates to his previous employment and is separate from the transactions Aura Capital has arranged.
Published Aura Capital transactions
The following transactions were arranged by Aura Capital and are published with full details on our case studies pages.
- Marylebone and Hyde Park, London
A £3,266,874 gross facility at 0.85% per month and 66.7% LTV across two prime central London addresses held as a residential investment, arranged within 14 days of instruction to clear existing first and second charges and allow an orderly sale.
- Walton-on-Thames, Surrey
A £1,000,000 net refinance at 0.89% per month and 40% LTV against a detached residence in a gated development, using an existing valuation report that the lender reviewed and accepted.
- Camberwell, London
A £575,000 refinance at 0.75% per month and 65% LTV against a five-storey Grade II listed townhouse with a historic planning enforcement notice. Below this page's £1 million threshold, it is included for the listed building and title considerations.
Hypothetical scenarios
The scenarios below are hypothetical. They illustrate how proposals of this kind are commonly approached and do not describe completed transactions or particular clients.
Acquisition ahead of a sale
A purchaser has agreed to buy a house for £2,750,000 with a fixed completion date, while their existing property, valued at £3,400,000, is under offer. A bridge secured on the existing property could fund the purchase, with repayment from its sale. If the purchaser will live in the new home, the loan is likely to be regulated and would be referred to an independent FCA-authorised adviser.
Refinancing a maturing facility
A company owns a lateral apartment in central London subject to a £4,500,000 bridge that matures in six weeks, with a sale agreed but not yet exchanged. A replacement facility with a longer term could repay the existing lender, with repayment from the sale and a refinance identified as a fallback.
Capital release for an overseas owner
A non-UK resident owns an unencumbered country house and wishes to release £1,600,000. Lenders would focus on identity and source of wealth checks, the repayment route and the treatment of any land or ancillary buildings in the valuation.
Facility terms
| Feature | Indicative position | Determined by |
|---|---|---|
| Facility size | From £1 million. £10 million and above considered individually | The property's value and marketability, the repayment strategy and lender capacity |
| Pricing | From 0.53% per month on qualifying cases | Leverage, the property, the borrower, the structure and the exit. Many cases are priced above the lowest rate |
| Leverage | Assessed case by case | The property, location, borrower structure and repayment strategy. Lenders may express limits on gross, net or combined loan to value, and we confirm which applies |
| Term | Typically up to 24 months | A realistic timetable to repayment, with contingency |
| Interest | Retained, rolled up or serviced monthly | The lender's product and, for serviced interest, evidence of income |
| Security | Usually a first charge. Second and equitable charges are available in some circumstances | Existing debt, any consent required and the equity across the security |
| Fees | Arrangement fees typically from 1%, plus valuation and legal costs. Some products include exit fees or minimum interest periods | The lender and product, confirmed in writing before you proceed |
| Guarantees | Personal guarantees are commonly requested from directors or beneficial owners of a corporate borrower | The lender's policy and the borrowing structure |
Pricing, leverage and timing are assessed together against the overall proposal. Lower leverage against readily marketable property with a well-evidenced exit generally widens lender choice and improves pricing. Higher leverage, unusual security or a complex structure tend to narrow it.
Acquisition, refinancing, capital release and refurbishment
Acquisition
Bridging finance can fund a purchase where timing does not suit a mortgage, including auction purchases and acquisitions ahead of the sale of an existing property. Lenders will look at the deposit and its source, the legal pack and, where a sale is the exit, the progress and pricing of that sale. The property value and the purchase price are assessed separately, and a lender will usually lend against the lower of the two.
Refinancing
A new facility can repay a maturing bridge or another loan, ideally before default interest applies. Lenders will want a redemption statement, an explanation of why the original exit has not yet completed and an updated repayment strategy. See refinance bridging.
Capital release
Funds can be raised against a property owned outright or with existing debt. Where an existing mortgage is to remain in place, a second charge requires that lender's consent in most cases and is assessed on combined loan to value. Where consent is not available, an equitable charge may be considered by selected lenders. It does not override any restriction the existing lender holds, and its suitability depends on the terms of the existing mortgage and legal advice.
Refurbishment
A facility can fund a property requiring works ahead of sale or refinance at an improved value. Lenders will want a costed schedule of works, details of the contractor and a realistic assessment of value on completion.
Costs and net proceeds
Gross facility, net advance and capital released
The gross facility is the principal borrowed, on which interest is charged and which is repaid at redemption. The net advance is the amount paid out at completion after any deductions the lender makes, such as the arrangement fee, its legal costs and any retained interest. The capital released is what remains after any existing debt has been repaid from the net advance.
Whether interest is deducted at the outset depends on the structure. Interest can be retained, meaning an agreed period of interest is deducted at completion and no monthly payments are made. It can be rolled up, meaning it accrues and is repaid with the principal at redemption. Rolled-up interest increases the redemption balance, and lenders may restrict the opening advance so that the projected balance stays within their leverage limit. It can also be serviced, meaning it is paid monthly, which requires evidence of income. Some lenders compound rolled-up interest monthly, which increases the redemption balance further.
Worked illustration: refinancing to release capital
Illustration, not a quote The rate, fee and legal cost below are assumptions for the purpose of the example and are not available product terms.
| Item | Amount |
|---|---|
| Property value | £3,000,000 |
| Gross facility (60% of value) | £1,800,000 |
| Interest at an assumed 0.70% per month for 12 months, retained at completion (£1,800,000 × 0.70% × 12) | −£151,200 |
| Arrangement fee, assumed 2% of the gross facility, deducted at completion | −£36,000 |
| Lender's legal costs, assumed, deducted at completion | −£10,000 |
| Net advance | £1,602,800 |
| Less existing mortgage repaid | −£1,200,000 |
| Capital released | £402,800 |
| Redemption balance at month 12 (no exit fee assumed) | £1,800,000 |
With simple rolled-up interest instead, the net advance would be £1,754,000 and the capital released £554,000. The redemption balance at month 12 would be £1,951,200, equivalent to 65% of the property value, and a lender would assess that figure against its leverage limit. The illustration excludes valuation fees, the borrower's own legal costs, any broker or exit fees and the cost of any extension.
Other terms to review
- Minimum interest periods: many facilities charge a minimum number of months' interest if repaid early
- Retained interest refunds: some lenders refund unused retained interest on early repayment, while others do not
- Exit fees: some products charge a percentage of the facility on redemption
- Extensions: these are not guaranteed and are usually subject to a further fee and possibly a revised rate
Illustrative facility costs and net proceeds
Valuation, legal process and execution
High-value and unusual properties generally require a full inspection by a RICS-registered valuer with relevant experience. Because comparable evidence is often limited and a small percentage difference represents a large sum, lenders usually instruct valuers from their own panel and may specify additional reporting. Desktop valuations are occasionally accepted at lower leverage where comparable evidence is strong, but they are uncommon for large or unusual properties.
| Stage | Typical position | Preparation |
|---|---|---|
| Assessment and lender discussions | Depends on complexity and the information available | Value, net requirement, existing debt, ownership and repayment strategy |
| Valuation | Often one to two weeks from instruction for prime property | Access, floor plans and details of any recent works |
| Legal due diligence | Frequently the longest stage where titles or structures are complex | Solicitors instructed early, title and corporate documents available |
| Completion | Straightforward cases can complete in around two to three weeks. Complex cases take longer | Identity, source of funds and source of wealth evidence |
Indicative terms are not a formal offer. Formal approval follows underwriting, valuation and legal due diligence. If the valuation is below expectations, the facility may be reduced, additional security requested or the structure revised. We consider how sensitive the proposal is to the valuation figure at the outset and recommend a contingency proportionate to that sensitivity.
Repayment strategy
Lenders assess the exit as closely as the security. For a sale, that means realistic pricing supported by agents' advice and comparable evidence, with a marketing period suited to the property. For a refinance, it means an evidenced refinance route consistent with the borrower's circumstances and the proposed mortgage lender's requirements. Other repayment events, such as the sale of a business or another asset, need documentary support. On larger facilities, lenders often look for a credible fallback as well as the primary exit. Where contracts for the exit are already exchanged, a closed bridge may improve lender confidence, although pricing remains specific to each case.
Borrowers and regulated lending
Individuals, UK companies and special purpose vehicles are widely accepted. Trusts, overseas companies, expatriates and foreign nationals are considered by selected lenders, with additional checks on the structure and source of wealth. Adverse credit is considered by some lenders, usually at lower leverage.
High value residential bridging FAQs
How much can be borrowed on a high value residential bridging loan?
Facilities start from £1 million, and facilities of £10 million and above are considered individually. The available amount depends on the property's value and marketability, the repayment strategy and lender capacity. We discuss the likely range with suitable lenders before an application is made, and the final figure is set by the lender after valuation and underwriting.
What rate applies?
Rates start from 0.53% per month on qualifying cases, subject to lender criteria, underwriting, valuation and legal due diligence. Many cases are priced above that level, depending on leverage, the property, the structure and the repayment strategy.
What is the difference between the gross facility and the net advance?
The gross facility is the principal borrowed and repaid. The net advance is paid out at completion after the lender's deductions, which may include the arrangement fee, legal costs and any retained interest. Any existing debt repaid from the net advance reduces the capital released further.
Why involve lenders before applying?
Discussing a proposal with selected lenders in advance establishes whether they are supportive of the property, structure and exit before valuation and legal costs are committed. Preliminary support is not a formal commitment, and any facility remains subject to underwriting, valuation and legal due diligence.
Can overseas borrowers and corporate structures be accommodated?
Selected lenders consider trusts, UK and overseas companies, expatriates and foreign nationals. These cases involve additional checks on identity, beneficial ownership and source of wealth, and legal advisers familiar with the structure.
What if there is already a mortgage on the property?
A first charge bridge can repay it from the advance. To keep the existing mortgage in place, a second charge may be possible, usually with the existing lender's consent and assessed on combined loan to value. Selected lenders consider an equitable charge where consent is not available, but it does not override the existing lender's restrictions and requires legal advice.
What happens if the valuation is lower than expected?
The facility may be reduced to remain within the lender's limits, or additional security or a revised structure may be required. We assess the sensitivity of the proposal to the valuation at the outset and recommend appropriate contingency.
How long does completion take?
Straightforward cases can complete in around two to three weeks. Complex titles, ownership structures or valuations take longer. The timetable depends heavily on how quickly legal due diligence can be completed.
Is a bridging loan on my own home regulated?
It may be if you or a close family member occupy, or intend to occupy, the property. Aura Capital does not provide regulated advice and refers these cases to an independent FCA-authorised adviser.
Discuss your requirements
Share a brief outline of the property, funding requirement and intended timetable, or arrange a private consultation at a time that suits you.
Telephone 01451 514563
Your property may be repossessed if you do not keep up repayments on a loan secured on it. All figures are indicative and are not an offer of finance. Lending is subject to lender criteria, underwriting, valuation and legal due diligence. Aura Capital is a trading name of Chammosair Limited, registered in England & Wales, company no. 15786496. Aura Capital is an independent broker, not a lender, and is not authorised or regulated by the Financial Conduct Authority. We do not give regulated advice. Where a case is or may be regulated, we refer it to an independent FCA-authorised adviser.