Pallas Capital completes £1.3m bridging loan to refinance residential development

24 February 2026

Pallas Capital, which launched in the UK in January, is proud to announce the successful completion of a £1,275,000 bridging facility in Oxshott.

The transaction demonstrates the firm’s ability to combine agility, transparent communication and expert client management in a complex, time-sensitive scenario.

Led by Anna Thompson, Originator at Pallas Capital, the 12-month bridge was structured at 75% LTV against a residential property in Oxshott.

The loan enabled the borrower to refinance both first and second charges while completing refurbishment works, with the exit strategy being the sale of the property once finished and fully marketed.

The borrower, a long-standing client of the introducing broker, had encountered unexpected setbacks. Mid-refurbishment works requested and funded by a previous buyer left the property stripped back and incomplete. When that buyer withdrew, the developer was left with an unmarketable asset requiring completion, alongside mounting pressure from a second charge investor seeking repayment.

A bridging solution was the most pragmatic and efficient option to stabilise the position, complete works to a high standard, and reintroduce the property to the market.

During underwriting, a number of previously unknown issues became known which placed the loan outside standard criteria. Rather than retreat, Pallas adopted a proactive and pragmatic approach, working closely with the borrower to identify and resolve the matters while maintaining momentum.

With deadlines looming and investor pressure intensifying, Pallas structured a stepped rate structure. This allowed the loan to proceed at an adjusted pricing level to reflect the additional risk, with a planned reduction in rate once the outstanding matters are cleared—anticipated within weeks of completion.

Valuation also presented a challenge. Given the property’s incomplete condition, the current market value was lower than initially expected. To deliver the required net loan amount, Pallas advanced the facility based on the value upon completion of works, introducing clearly defined deadlines for works and marketing to protect the exit.

Throughout, risks were communicated transparently, ensuring the borrower remained fully informed and comfortable with the strategy.

The transaction required careful coordination across multiple parties, particularly the outgoing first charge lender.

Pallas handled this, as well as the additional legal layers in connection with the second charge lender, expertly.

Special recognition is given to Matthew Stayt at Seddons, whose responsiveness and proactive approach were instrumental in driving the deal to completion.

As the loan was funded from Pallas’ own capital lines, fund transfers were coordinated efficiently, ensuring completion proceeded smoothly once legalities were resolved.

Anna Thompson, Originator at Pallas Capital, commented:

“This transaction is a strong example of how a well-structured bridging facility can provide stability in challenging circumstances. From the outset, we understood the borrower needed more than capital—they needed certainty, speed and a partner willing to work through complexity.

“By maintaining transparent communication and taking a pragmatic underwriting approach, we were able to structure a solution that addressed immediate pressures while supporting a clear path to exit.

“At Pallas Capital, we are focused on backing experienced borrowers and brokers with flexible capital and proactive management. Completing this facility demonstrates our ability to move decisively, manage risk responsibly, and deliver outcomes that protect all stakeholders.”

Pallas will continue to work closely with both broker and borrower throughout the term, supporting the completion of works, pricing restructuring, and ultimately facilitating a smooth repayment on sale.

For more information, visit www.pallascapital.co.uk.