How one landlord used a £335,000 bridging loan at 33.5% LTV to settle a Barnet confiscation order without selling assets
When a court confiscation order landed on an experienced London property investor, the clock started.
The investor, who holds eight buy-to-let properties, needed to raise capital quickly, without selling assets or disturbing long-term finance. The solution was a £335,000 bridging loan secured against an unencumbered £1m property in Dollis Hill, arranged by TAB.
For brokers, the case illustrates how short-term finance can resolve acute legal liabilities where conventional lending cannot move fast enough.
The 24-month first-charge facility was structured at 33.5% loan-to-value (LTV). The low leverage gave TAB a strong security position; the term gave the borrower the runway to manage a wider portfolio and arrange a longer-term refinance.
A net £47,000 remained after settling the liability – retained to cover ongoing costs across the investor’s broader portfolio.
What triggered the court confiscation order?
The order stemmed from an appeal – ultimately unsuccessful – brought against the London Borough of Barnet over a planning enforcement notice on a separate property. That asset had previously operated as three self-contained flats and has since been converted back to a single dwelling.
Local authorities routinely pursue confiscation orders through the courts against landlords who have profited from non-compliant conversions. The sums involved can be substantial. In this case, there was tremendous time pressure. Speed of execution, not just deal structuring, became the critical factor for both the broker and lender.
The broker’s role in the bridging loan
The loan was introduced by Robert Hershaw, founder and managing director of Active Investments. He said the structure allowed the borrower to address the immediate liability without surrendering long-term financial flexibility.
“TAB was able to structure the facility against the £1m property at a low LTV, providing the capital required to resolve the immediate issue while leaving the client with £47,000 in net funds,” Hershaw said. “The 24-month term also provides useful flexibility while they arrange the longer-term refinance.”
Underwriting was handled by TAB’s senior underwriter Justice Marima.
Calum Knight, TAB’s business development manager for south-eastern England, said the deal showed how a bridging loan can unlock capital in an unencumbered asset precisely when borrowers face short-notice demands. “The property provided substantial security for the £335,000 bridge, with the resulting 33.5% LTV giving us a strong lending position. The 24-month term also gives the borrower the time and flexibility needed to manage the wider portfolio and refinance.”
He added that the enforcement breach was unrelated to the security property. “The breach was unrelated to our security property.”
How does this bridging loan fit TAB’s wider lending approach?
The Dollis Hill deal adds to a run of complex completions for TAB. The lender recently structured almost £2.9 million in bridging finance across two separate transactions for broker Prism Private Finance. One deal used a second-charge structure to preserve existing senior debt.
Earlier this year, TAB completed a £5.85 million bridging facility on a 24-month term against a condensed timetable.
TAB has also been broadening its distribution reach, having recently joined the TMA Mortgage Club panel to widen access to its specialist product range for intermediaries across the UK.
TAB was founded in 2018 by Duncan Kreeger and has lent £850m since launch. The lender recently secured a £200m funding line from a challenger bank.
For landlord clients facing time-sensitive legal demands, a bridging loan at conservative LTV is one of the most effective tools available. It works best where security is strong but liquidity is the constraint – a common position for portfolio investors.
