£195k bridging facility for an overseas borrower (BTL exit)

Deal snapshot

• Property: New-build, two-bed flat in a recently completed development (Birmingham)
• Borrowers: First-time investors; one UK-based and one overseas/foreign national
• Purpose: Bridge the purchase to enable a later refinance onto a buy-to-let mortgage
• Bridging facility: £195,000
• Loan-to-value (LTV): 75%
• Term: 9 months
• Reported valuation: £309,000 (including new-build premium)
• Adjusted valuation basis: £260,000 (excluding the new-build premium)

Why a bridging facility was used

For first-time buy-to-let investors, timing can be a deciding factor. In this case, the borrowers needed funding to complete a UK purchase, while their longer-term plan relied on refinancing to a buy-to-let mortgage.

A bridging facility provided the flexibility to complete the transaction promptly, with a structured route to exit into a buy-to-let product once the property and borrower position were ready for term lending.

Key challenges and how they were handled

1) Overseas borrower AML requirements

Because one borrower was based overseas, the lender needed to complete enhanced AML checks and be satisfied with the source of funds.

To support this, the case was approached with a detailed review of available documentation, including:

• payslips
• bank statements
• transaction history

The objective was to build a clear, auditable picture of where funds originated and how they were used towards the purchase.

2) Remote execution of security documents

The borrowers could not travel to the UK to sign security documentation in the usual way. The solution needed to be both practical and compliant.

Security documents were executed through a remote process:

• the borrower signed on a video call with a UK solicitor
• a local solicitor in the borrower’s country supported the process
• completed documents were then posted to the UK solicitors for handling

This reduced delays while maintaining a robust legal workflow for a cross-border transaction.

3) Valuation uncertainty caused by the new-build premium

The property’s valuation reflected a new-build premium, which can create uncertainty when planning a refinance to term lending.

To support the exit strategy, the lending decision was based on an adjusted valuation rather than the full new-build figure. In effect:

• the headline valuation was £309,000
• the premium-removed resale value was treated as £260,000
• the bridging facility was structured at 75% LTV against that adjusted basis

By aligning the borrowing position with a more refinance-relevant value, the plan focused on improving confidence in the eventual move to buy-to-let.

4) Supporting the deal outside standard parameters

At 75% LTV, the transaction was described as falling outside the lender’s standard approach for borrowers with limited investment experience.

Rather than treating the case as a simple tick-box decision, the lender reviewed the overall circumstances—taking into account the borrowers’ position and the strength of the exit plan—before approving the facility on an exceptional basis.

Outcome

The borrowers received a £195,000 bridging facility on a 9-month term at 75% LTV (based on the adjusted valuation). This enabled them to complete their first UK investment purchase with a clear intention to refinance onto a buy-to-let mortgage.

What this case illustrates for buy-to-let landlords

• Enhanced AML processes can be managed effectively for overseas borrowers when evidence is clear and well organised.
• Remote legal execution can reduce friction in cross-border transactions without necessarily slowing down completion.
• Valuation approach matters: when a property includes a premium (such as new-build uplift), structuring lending against a more refinance-relevant figure can support the exit plan.
• Bridging can be a practical bridge to BTL for first-time investors—particularly where timing and refinance readiness need a staged approach.