The facility was agreed at 70% LTV of the market value, equating to 77% of the purchase price

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 SPV 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.

The loan was introduced by Ben Hartley, specialist mortgage broker at Word On The Street, and completed on a 12-month term with retained interest.

The facility was agreed at 70% LTV 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 12-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 deal was completed by Heather Mitchell, lending manager at Recognise Bank, and managed by Sasha Holland, lending operations manager.

This was the first transaction introduced to the bank by Word On The Street.

Heather commented: 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, she said.

Working closely with Ben, as well as the wider team, allowed the deal to progress efficiently from initial discussion through to completion, she added.