Recognise Bank has completed a £2.95m bridging loan to refinance an office-to-residential conversion in Shrewsbury, enabling the developer to repay its existing development finance facility and complete the final stages of the project.
Raj Vilkhou of Express Financial Services introduced the case. The security is a newly converted six-bedroom residential property with a separate one-bedroom staff annexe, finished to a high standard.
The bridging loan refinanced the incumbent development lender before its facility expired. With that deadline approaching, Recognise worked closely with the broker and the other parties involved to maintain momentum.
The bank took a practical view of the transaction and used title insurance to address the relevant legal requirements, allowing the development lender to be redeemed within the required timeframe.
Luke Beirne, senior lending manager at Recognise Bank (pictured), led the transaction. "This was a strong example of how we can take a practical approach to a transaction and work closely with the broker to deliver within a tight timeframe," he said.
"By using title insurance, we were able to complete the refinance before the existing development facility expired, while also providing the borrower with the funds needed to finish the project and move on to its next development."
Raj Vilkhou added that Recognise Bank understood the requirements of the case from the outset. "Luke and the team were decisive and took a sensible approach to the legal requirements, which gave our client the certainty it needed to repay the existing lender, complete the project and progress its future plans."
The completion has also resulted in a further application from the same client for bridging finance, this time secured against two newly renovated residential properties.
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