Recognise Bank has completed a £231,000 commercial bridging loan to support the purchase of a vacant commercial investment property in Bristol.
The facility was arranged for a newly formed special-purpose vehicle acquiring a vacant commercial property. The building had previously been owned by a family member and had been the long-standing trading premises of the family business.
Ben Hartley of Word On The Street introduced the loan, which completed on a twelve-month term with retained interest. The facility was agreed at 70% loan-to-value of the market value, equating to 77% of the purchase price.
The borrower intends to apply for planning permission to convert the property to residential use. The twelve-month term provides time for the planning process to be followed, with indicative development finance terms already in place should consent be granted. If planning is not approved, the property will be tenanted later in the term, with a refinance onto a commercial term mortgage forming an alternative exit route.
The property was subject to restrictive covenants on the title, which were identified early in the process. Recognise Bank took a practical view of the associated risks, working closely with the broker, solicitors and valuers to progress the case efficiently.
Heather Mitchell, lending manager at Recognise Bank, and Sasha Holland, lending operations manager, completed the deal. This was the first transaction introduced to the bank by Word On The Street.
"This was a case where speed, clarity and sound judgement were essential," said Heather Mitchell, lending manager at Recognise Bank (pictured). "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."
Ben Hartley, specialist finance broker at Word On The Street, added, "As a new broker to Recognise Bank, this was a strong first experience," he said. "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."
