From Chelsea to the Balearics: Somo completes £1.2m refinance to support property sale and business growth
02 July 2026
Somo has completed a £1.2m first charge bridging loan against a Chelsea buy-to-let property, enabling an overseas borrower to refinance an expiring facility, avoid a discounted sale and release capital to support a growing hospitality business in Spain.
The £1,207,500 loan was secured at 70% LTV against a property in Chelsea and completed through Somo Prime at a reduced rate of 0.75% per month.
The challenge
The borrower, a Spanish resident and experienced property investor, had reached the end of a six-year fixed-term facility with their existing lender.
While the Chelsea property was already being marketed for sale, the borrower was unwilling to accept offers below their target price and needed additional time to secure the right buyer.
At the same time, they required working capital to support a recently launched beach club business in a popular Spanish Resort.
The borrower needed a solution that would:
- Repay the existing lender before the facility expired
- Avoid pressure to sell below market expectations
- Release capital for business purposes
- Complete quickly and on competitive terms
The property
The security was a Chelsea end-terrace property arranged as two self-contained flats and held under a single title, occupying a sought-after position in one of London's most desirable residential areas and was valued at £1.725m by an independent surveyor.
The solution
Somo structured a £1.2m first charge bridging loan through its Somo Prime product.
The facility enabled the borrower to refinance their existing lender while releasing additional capital for business purposes, including investment into their hospitality venture.
Despite the complexities of an overseas borrower, multiple uses of funds and a property that had been on the market for an extended period, Somo was able to take a pragmatic view of the asset, the exit strategy and the borrower's wider circumstances.
The outcome
The completed refinance delivered several key benefits:
- Existing lender repaid in full
- Additional working capital released for business use
- Borrower avoided the need for a distressed or discounted sale
- Competitive Somo Prime pricing secured at 0.75% per month
- Six-month term provided breathing space to achieve the desired sale outcome
Somo’s Underwriting Director, Rob Johnson, said:
"Property sales don't always happen on a perfect timeline. In this case, the borrower had significant equity in a quality Chelsea asset but needed additional time to achieve the right sale price. By taking a common-sense solutions focussed view, we were able to refinance the existing facility, release working capital and provide the flexibility needed to move forward with confidence."
