£716,500 Second Charge Bridging Loan Completed Despite Title Issues
A limited company needed to release £716,500 of capital from a £2.2 million detached home in Hayes — but title issues on the property threatened the deal. We worked with the lender and solicitors to put suitable indemnities in place and completed the second charge bridge on 8 May 2026.
£716,500
Loan amount
33%
Loan-to-value
12 Months
Term
The Client Scenario
Our client — a limited company — needed to release capital for business purposes against a high-value residential asset already held with a first-charge lender.
The security was a detached house in Hayes valued at £2.2 million , with the company seeking a £716,500 second charge facility at a comfortable 33% LTV . The business case was straightforward: working capital, deployed quickly, against an asset with significant unused equity.
A second charge bridging loan was the right structure. It avoided disturbing the existing first-charge facility, kept the rate competitive given the low LTV, and gave the company a clear 12-month runway to refinance or exit.
What Could Have Gone Wrong
Mid-process, title issues on the property surfaced during the lender's due diligence. On a second charge, that's a serious problem — the lender sits behind a first-charge holder and has even less tolerance for unresolved title risk.
Without a clean resolution, the deal had several ways to collapse:
- Lender pulling out of underwriting once title issues were flagged
- Solicitors and lender failing to agree on acceptable indemnity wording
- First-charge holder objecting to the second-charge registration mid-process
- Business capital release stalling while a time-sensitive need went unmet
The Solution
We sat down directly with both sides — the lender (Together) and the solicitors — and worked the indemnity route until everyone was aligned. Suitable title indemnity policies were put in place to cover the specific defects, satisfying the lender's risk requirements without changing the underlying loan terms.
The result: a £716,500 unregulated 2nd charge bridge, 12 months, 0.75% per month, completed on 8 May 2026 at 33% LTV.
- Identified the specific title defects and assessed indemnity options early
- Liaised directly with Together and the solicitors to align on indemnity wording
- Arranged title indemnity policies that satisfied the lender's underwriting
- Packaged the limited company structure and business-purpose case cleanly
- Kept the deal on track to 33% LTV at 0.75% per month over a 12-month term
- Completed the second charge facility with Together on 8 May 2026
The Outcome
£716.5k
Second Charge Secured
33%
LTV Against £2.2M Asset
12mo
Term Agreed
0.75%
Per Month Rate
Title Issues Resolved
Completed With Together
Frequently Asked Questions
Can a limited company take out a second charge bridging loan?
Yes. Limited company borrowers are common on second charge bridges, particularly where the funds are needed for business purposes against a property already held with a first-charge lender. On this case, a Ltd company released £716,500 at 33% LTV against a £2.2m detached house in Hayes — the corporate structure was packaged and approved without issue.
What is a second charge bridging loan and when is it used?
A second charge bridge sits behind an existing first-charge mortgage on the same property. It's used when a borrower wants to release equity quickly without disturbing the first-charge facility — common for business-purpose capital release, short-term cash flow needs, or unlocking funds while a longer-term refinance is arranged. Because the lender is in second position, deals are typically capped at conservative LTVs and priced accordingly.
What happens if there are title issues on the property?
Title issues don't have to kill a deal — they have to be managed. The route is usually a title indemnity policy that protects the lender against the specific defect. The key is identifying the issue early, getting solicitors and the lender aligned on acceptable indemnity wording, and arranging the policy quickly. On this case, that's exactly how we kept a £716,500 second charge facility with Together on track.
What LTV is available on an unregulated second charge bridge?
It depends on lender appetite, the strength of the first charge, the property type and the borrower profile — but conservative LTVs (typically up to 70%–75% combined first plus second) sit best with most second-charge lenders. The case above completed at 33% LTV, which gave Together significant headroom and helped secure a 0.75% per month rate over a 12-month term.
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