Additional finance secured to complete an overrun freehold move

A London practice’s move to a new freehold site ran over budget, and the existing lender wouldn’t fund the shortfall to finish it. We built a proper case to approach other lenders instead of a rushed one. Additional finance was secured on competitive terms, and the practice completed.

The Situation

The principal of a dental practice in London had already begun moving from rented premises to a new freehold site close by. The move itself was funded through their existing lender, and the project was underway when it ran into a common but awkward problem: the project overran, and the client’s existing bank wasn’t able to arrange any additional funding to complete it, leaving a gap between what had already been spent and what was still needed to finish.

That’s a genuinely difficult position for a practice owner to be in. The move is already in motion, the original premises may already be in the process of being vacated, and the lender who funded the first stage isn’t able or willing to fund the shortfall needed to actually finish it. Stopping halfway through a practice relocation isn’t a realistic option, but neither is proceeding without the money to complete the fit-out, leaving the client caught between two options that both looked unworkable.

What We Did

After an initial discussion to understand exactly where the project stood and what had caused the overrun, we outlined what information we’d need to approach other lenders with a comprehensive, credible case for the additional funding, rather than a hastily assembled request that might struggle to get past an initial review. Using our experience with how banks assess these applications, and the negotiation that goes with them, we put together a proper finance application rather than a rushed one, even though the client was already mid-move and understandably keen to move quickly to a resolution.

The Result

With the right information in place, we secured the additional finance needed to complete the project on competitive terms. The client now has a new, fully equipped dental practice in a freehold property that is performing well, with the relocation finished on the timeline the practice needed rather than stalled indefinitely.

The point worth taking from this case: when an existing lender won’t stretch to cover a project overrun, that’s not necessarily the end of the road, it’s a signal to take the case to a lender who will actually assess it properly rather than simply declining because the original facility wasn’t sized correctly. A well-prepared application to the right lender can complete a project that looked stuck.

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