Black & White Bridging has provided a £2 million bridging finance facility for the conversion of a former Cheshire public house into a holiday let property. The transaction involved refinancing existing debt and releasing additional capital to complete the development.
The borrower, a property developer and landlord who also works as an IT consultant, had converted the former pub into a residential property with the main dwelling already complete and tenanted. The finance was required to restructure existing borrowing and fund the completion of a separate annexe, enabling the entire property to operate as a holiday let.
Finance structure
The transaction required swift underwriting due to tight completion deadlines and the need to refinance existing debt while releasing additional funds. Matt Yates, relationship director at Black & White Bridging, structured the £2 million facility to cover both the refinancing and the capital required for the remaining works.
“Projects like this demonstrate why specialist lending exists. Every transaction has its own challenges, and in this case, it wasn’t just about refinancing an existing facility,” said Yates. “It was about understanding the wider vision for the asset and structuring a solution that gave the borrower the flexibility and certainty they needed to complete the project.”
Market context
The transaction highlights the continued use of bridging finance for property conversions and holiday let developments. The deal comes as landlords face changing market conditions and seek alternative property investment strategies.
Yates noted that the combination of tight timescales, debt restructuring and the evolving nature of the property meant a standard lending approach would not have been suitable. The facility was designed to allow the development to continue without interruption.
The completion of the project reflects ongoing activity in the specialist lending sector, which provides finance for developments that fall outside traditional lending criteria. Such facilities typically bridge the gap between property acquisition or refinancing and longer-term funding arrangements, with activity continuing despite wider interest rate considerations affecting the property market.
