Bridging the Gap: Creative Funding for Property Projects

When it comes to development finance, the numbers need to stack up, but sometimes, the key to getting a project off the ground lies in assets you already own.

That was exactly the case for a recent client who was mid-way through converting a former Sunday school in Cornwall into a serviced holiday let and quickly ran into cash flow challenges.

The Challenge: Stalled Progress on a Schoolhouse Conversion

Our journey with the client started with an initial consultation, where we discussed structuring options and next steps.

A few months later, they returned with exciting news, they’d just won a property at auction: a former Sunday school in Cornwall, ideal for a serviced accommodation conversion.

We quickly set up a limited company (SPV) to allow the client to complete the purchase through the correct structure.

Initially, the development was self-funded, with the intention of seeking finance later down the line.

But, as is often the case, cash flow soon became tight, and funding was needed to keep the project moving.

The Solution: Unlocking an Untapped Asset

We introduced the client to Donna at Northdown Dahley, a trusted finance broker who specialises in development and bridging finance.

During a thorough fact-find, Donna discovered something that the client owned a second property outright, with no mortgage which they were planning to sell.

By refinancing that property with a short-term bridging loan, the client was able to release £200,000 in capital, injecting fresh funds directly into the Cornwall development.

The loan was taken on a 12-month term
Repaid in full following the successful sale of the refinanced property
Kept the project on track without the need to raise new equity or sell assets prematurely

Sometimes, success in development isn’t about securing new finance it’s about unlocking what you already have, with the right advice to guide you.

Strategic Advice: One Flat at a Time

With funds in place, Donna advised the client to focus on completing one unit first.

The plan?

Split the title of the finished flat from the freehold
Refinance it on a buy-to-let mortgage
Use the released equity to fund the remaining units

Our team assessed the CGT and SDLT implications of this approach and provided clear, practical advice on how to proceed.

By tackling the build in phases, and planning around title splits and tax impact, the client now has a sustainable strategy to complete the development without overreaching financially.

Key Lessons for Property Developers

Don’t underestimate your existing assets — they could be the key to unlocking new capital
Early collaboration between broker and accountant makes funding faster and smoother
Project staging can help maintain momentum when funding is tight
Tax matters from day one — SDLT, CGT, and structuring should be considered early

Need Eyes on the Bigger Picture?

Whether you’re mid-way through a build or just running the numbers, we help developers:

Create finance-ready structures
Tap into existing equity
Build a timeline that aligns with funding needs
Connect with trusted brokers to secure deals

Getting in touch with us

Strategic planning and finance go hand in hand in successful property development.

If you’d like to discuss your current project or want advice on financing options, give us a call today on 01634 731 390 or complete our take the next step form and a member of the team will be in touch.