As we start a new year, I was recently asked what I thought was the big missed opportunity of 2015, and would I have done anything differently? I didn’t hesitate in my answer – why do so many lenders either refuse to do re-bridges or are they just unaware of the potential for this type of business?

After all, if a client needs a bridge, it can be financed like a bridge and the security is suitable for a bridge – it’s probably a bridge!

Joking aside, there are many reasons why a client may need to extend their bridging loan term. It can be anything from an existing bridging period coming to an end, along with a preferential interest rate or a closed bridge loan where and the agreed deadline is looming, but there is still a need for funds.

It could also be that the property project is hitting delays and more time is needed to finish the renovation works to get it ready for sale or rent. This situation can arise if the amount of work was initially underestimated or unforeseen issues were encountered once work had started. We have also seen cases where a client has had issues with a contractor, such as when a builder has gone into liquidation during a refurbishment or the client and contractor have parted ways during the works and the client needs more time and money to complete the project.

Bad weather can also have a big impact on timescales. As we’ve seen with recent storms, work can grind to a halt and because bridging loans often only last a few months, this can cause delays when tools have to be downed.

However, when we at Roma Finance are asked to look at cases that need extra funding and re-structuring, we don’t just dive in with both feet. Our process of getting under the skin of every case still applies, so we can make quick, informed decisions and pay out promptly. But we still need to meet the client and discuss the issues that have arisen and how we might move forward. With a credible client and a viable project, we will certainly look to lend as we would with any other type of bridge.

Of course, we also want to see that the client is credible and that the planning of the project was done properly and that everything possible was done to complete the project within the original time frame. After all, re-bridging shouldn’t be seen as an easy ‘get out’ clause - the client needs to retain budget control and the project itself need to be generating the right amount of profit or yield.

As the end date to the finance is coming to a close, existing lenders too are often pleased to let the client re-finance elsewhere. For them, it means that the loan is redeemed and they don’t have the headache of arranging further underwriting checks to provide additional funds. The lenders we have paid off for recent clients have included high street banks, building societies and other bridging lenders.

So is bridging finance making a real claim here for being a ‘mainstream’ source of funding? I think it is. More and more property developers are aware of the flexibility of bridging finance and are approaching us with well thought out proposals. Even if things don’t go to plan, we are always willing to listen to see if a re-bridge can save the client and their property project, as well as appeasing the current lender.


Attributed to Scott Marshall, Operations Director at Roma Finance