Recognise Bank has completed a £364,000 commercial bridging loan to support the acquisition of an 11-bedroom hotel in Bournemouth.
The facility was agreed for a couple who run separate trading businesses in the car and beauty industries and have built up an investment property portfolio in recent years.
Introduced by Ian Monks of Commercial Mortgage Solutions, the 12-month bridging facility with retained interest was completed at 70% loan-to-value (LTV).
The property is a currently closed B&B in a seaside location where there is an oversupply of overnight holiday accommodation. The vendors had operated the hotel as a lifestyle business, with limited trading history, meaning no formal accounts were available.
Following completion, the borrowers plan to apply for planning permission to convert the property into a large HMO, with the intention of renting to young professionals. In the interim, they intend to reopen and trade the B&B to capture seasonal demand and ensure the property remains in active use.
The case required a swift turnaround after a previous lender withdrew from the transaction at a late stage. With completion at risk, Recognise Bank was able to step in and provide funding that aligned with the borrowers’ plans.
The bank accepted a readdressed valuation and used title indemnity insurance to facilitate completion, with the loan finalised within 22 working days from application.
Heather Mitchell, Lending Manager at Recognise Bank, said:
“This case required a considered approach given the lack of trading history and the proposed change of use. The borrowers had a clear plan for both the short-term operation of the asset and its longer-term repositioning, which provided a solid basis for the lending decision.
Timing was a key factor, particularly with the previous lender withdrawing at a late stage. By taking a pragmatic view on valuation and structure, and working closely with all parties involved, we were able to complete the transaction within the required timeframe and support the acquisition.”
Ian Monks, Broker at Commercial Mortgage Solutions, added:
“This was a time-sensitive case where the clients were at risk of losing the property following a change in position from another lender. It was important to find a lender that could understand both the immediate trading plans and the longer-term strategy for the asset.
The team at Recognise Bank were clear and responsive throughout, working collaboratively to ensure the deal progressed efficiently and completed within a tight timeframe.”
Recognise Bank continues to support property investors with flexible bridging finance across a range of asset types, including cases involving change of use and transitional assets.
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