Recognise Bank has provided a £2.95 million bridging loan to refinance an office-to-residential conversion in Shrewsbury, allowing the developer to repay existing development finance and complete the final stages of the project.
The loan, arranged by Raj Vilkhou of Express Financial Services, is secured against a newly converted six-bedroom residential property with a separate one-bedroom staff annexe in the Shropshire town.
Tight timeframe completion
The bridging facility was required to refinance the incumbent development lender before its facility expired. Recognise Bank used title insurance to address legal requirements, enabling the transaction to complete within the required timeframe.
Luke Beirne, senior lending manager at Recognise Bank, 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.”
The deal follows a period of increased activity in the bridging finance sector, as developers and landlords navigate tighter lending conditions. While some landlords face regulatory challenges, the conversion market continues to attract finance as office-to-residential projects progress across the UK.
Further applications
Vilkhou said Recognise Bank understood the requirements 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 resulted in a further application from the same client for bridging finance, this time secured against two newly renovated residential properties. The case demonstrates continued demand for short-term property finance in the regional conversion market, as developers seek flexible funding solutions for projects outside major urban centres.
