Quick summary:
Location: High-end residential development site (location withheld for privacy)
Loan Type: Second Mortgage
Loan Amount: $1.4 million
Problem: Construction delays and cost overruns due to prior mismanagement
Solution: Fast, non-bank second mortgage funding to complete the build
The developer was staring down the barrel of unfinished prestige homes and a mounting financial shortfall. What began as a luxury residential development had quickly devolved into a stalled project, riddled with defects and overspending caused by the original builder’s poor oversight. Progress halted. Funds dried up. Traditional lenders backed away. With a half-finished site and dwindling investor confidence, the outlook was grim.
They needed capital—and quickly. But not just any capital. They needed a lender who understood the complexities of construction funding at the tail end of a project. One who could look past the setbacks and act swiftly.
When Traditional Finance Won’t Step In
Most banks simply don’t have the flexibility or appetite to fund developments in distress, especially when a prior builder has walked away. This developer had already gone through the usual channels—mainstream banks and even a few second-tier lenders. The answer was the same each time: “Too risky.”
What made this deal particularly difficult was the stage of the build. While most of the structure was already up, it was unusable without a final injection of funds for finishing trades, compliance certificates, and defect rectification. And every day the site sat idle meant more costs, more interest burn, and a longer road to settlement.
They weren’t just running out of time—they were running out of options.
A Strategic Second Mortgage Secured in Days
This is where Secured Lending stepped in. We assessed the site, reviewed the residual loan term, and evaluated the developer’s asset position. What we found was a property with significant underlying value, despite the challenges—and a motivated borrower ready to complete the works. Within days, we arranged a second mortgage loan of $1.4 million secured against the residual equity in the development.
Here’s how we made it work:
Loan Type: Second mortgage—sitting behind the first mortgage already in place
Term: Short term bridging structure, designed purely for completion and exit
Security: Equity in the development site and director guarantees
Assessment Focus: Asset value and exit strategy, not past performance
Unlike banks, we didn’t penalise the borrower for prior cost overruns. We focused on the future value and the clear plan to bring the development to practical completion within weeks.
The borrower used the funds immediately to bring in a new building team, correct prior defects, and complete internal finishes. The project moved quickly back on track.
A True Partnership: Lending and Advisory Combined
This wasn’t just about releasing funds. Secured Lending also worked closely with the borrower’s legal and construction advisors to ensure progress payments, certificates, and timelines were tightly managed. Our in-house structuring team liaised with the quantity surveyor and valuer to monitor risk at every stage.
Having this proactive oversight helped preserve equity, ensure rapid disbursements, and keep the project on a path toward sales and final settlement. The developer was free to focus on delivery—while we managed the finance mechanics.
How can a business benefit from a second mortgage loan?
Second mortgage finance is one of the most underutilised tools for unlocking capital tied up in real estate assets. Many business owners don’t realise they can leverage existing equity without disturbing their primary loan facility. In this case, a second mortgage offered:
Fast liquidity when time was critical
No disruption to the existing first mortgage
A defined exit strategy through pre-sales and settlement
Custom terms aligned with the build schedule
Whether it’s for construction completion, expansion, working capital, or even temporary debt restructuring, a second mortgage can act as a smart bridging tool without long-term commitments.
If your development is stuck, your bank has said no, or your project just needs that final injection of capital to cross the line—Secured Lending can help. We specialise in short-term, fast-response loans tailored to real-world business scenarios. From caveat loans to second mortgages, we move with speed, structure with care, and always think like business owners.
Reach out today for a confidential chat about your funding options.
