Bridging Loan For New Build Guernsey Home In The Channel Islands

£800K Guernsey

Due to the differing regulatory environment, property finance in the Channel Islands can require unique lending solutions - thankfully, bridging finance can offer these solutions.

The Scenario

When it comes to developing property, Guernsey can offer lucrative prospects. Yet, difficulties can arise through a lack of regulated lenders. 

We were approached by a client owning a large amount of property in Guernsey (1,600 homes). 

  • She had recently acquired a valuable plot, in which she planned to build another property.
  • This was a favourable situation, especially in Guernsey, as only a handful of plots specifically for residential property development are made available (priced upwards of £700K.)

Our client needed the funding to act on this new acquisition, and capitalise with a new valuable residential property. 

The Solution

The home to be put forward as security was mortgage-free and valued at £3M. In Guernsey, there is restrictive property law regarding ownership, meaning that most properties of this value are passed on through family trusts.

Our client needed a bridging loan for £800K, raised against her current valued property. The funds would then be used to develop the new build (valued at £1-1.5M).

The main issue arose from our client needing a specialist lender. Due to a lack of financial regulation in Guernsey, the pool of lenders is smaller compared to the UK, as UK-regulated lenders (for homeowner borrowing) can’t get involved.

  • We approached the correct lender, sourced through our specialist network, and arranged a meeting the following week.
  • There was no need for an inspection which can often slow the pace of completion. Specialist lenders know their market, and this can greatly speed up the process.
  • Lastly, we secured finance within three weeks after our client’s application was submitted.

Ultimately, through our connected network of lenders, we were able to get our client a satisfactory and speedy result delivered by our specialist bridging loan brokers.

Simple & easy
short-term finance

Whatever you need your next short-term finance loan for, we’ve got you covered. Let our friendly expert team find you the perfect tailor-made solution.

  • Upsizing
  • Downsizing
  • New Build
  • Investment
  • Refinancing
  • Renovation
  • Commercial
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