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Bridging Finance is characterised by its flexibility and speed, sometimes completed in a matter of days to meet the demands of time-sensitive property and re-mortgage transactions. Whilst this provides clear advantages to a borrower, it also highlights the importance of ensuring that lenders have strong legal safeguards in place.

When a default occurs, enforcement proceedings can become complex. In the recent High Court case of HNW Lending Ltd v Lawrence (2025), a £1.5 million bridging loan was advanced to a corporate borrower. Pursuant to the loan agreement, HNW Lending Ltd was appointed as ‘Security Agent’ to hold and enforce security for the benefit of the lenders. The borrower defaulted and HNW Lending Ltd sought to enforce its security. The borrower argued that HNW Lending Ltd, as the ‘Security Agent’ had no grounds to enforce and could only be treated as a third party under the Contracts (Rights of Third Parties) Act 1999. The Court rejected this argument and confirmed that HNW Lending Ltd was validly appointed to act for the lenders and could enforce the loan and security. This case confirms that security agents can enforce bridging loan rights, provided the documentation is clear, properly executed, and promptly registered.

Although speed and efficiency are vital in bridging finance, perfecting security remains paramount. Loan agreements should expressly exclude any unintended third-party rights, and charges must be correctly executed and registered. By putting these safeguards in place from the outset, lenders can move quickly to meet borrower demands while remaining confident that their position is fully protected, an area in which our firm has extensive experience for over 14 years.