Recognise Bank has completed a £231,000 commercial bridging facility for the acquisition of a vacant investment property in the west of England.
The loan was provided to a newly formed special purpose vehicle acquiring a vacant commercial building in Bristol that had previously been owned by a family member and operated for many years as the trading premises of the family business.
The 12-month facility was introduced by Ben Hartley of Word On The Street and completed with retained interest. It was agreed at 70% loan-to-value of the market value, equating to 77% of the purchase price.
The borrower plans to seek planning permission to convert the property to residential use. The 12-month term allows time for the planning process, with indicative development finance terms already in place should consent be granted.
If planning approval is not forthcoming, the property will be let later in the term, with a refinance onto a commercial term mortgage providing an alternative exit strategy.
Restrictive covenants affecting the title were identified early in the transaction. Recognise Bank took a pragmatic approach to the associated risks, working closely with the broker, solicitors and valuers to ensure the case progressed efficiently.
The deal was completed by Heather Mitchell, lending manager at Recognise Bank, and managed by Sasha Holland, lending operations manager. It was the first transaction introduced to the bank by Word On The Street.
Mitchell said: “This was a case where speed, clarity and sound judgement were essential. The client had a well-considered plan for the asset, but the transaction required a lender willing to assess the wider context, including the planning strategy and the position on title, rather than treating it as a straightforward purchase.
“By anchoring the facility to the independently confirmed market value, and by taking a practical view of the restrictive covenants, we were able to provide funding that aligned with the client’s objectives while remaining comfortable from a risk perspective.
“Working closely with Ben, as well as the wider team, allowed the deal to progress efficiently from initial discussion through to completion.”
Hartley added: “As a new broker to Recognise Bank, this was a strong first experience. Heather and the lending team were engaged from the outset, understood the risks attached to the planning strategy, and were clear on what was needed to progress the deal. That made a real difference to the outcome for the client.”
