Recognise Bank has announced that it has completed a £556k residential bridging loan to support the renovation of an investment property in central London, while also releasing capital to support the borrowers’ trading business.
The facility supported a couple renovating a period mews property in South Kensington. Works focused on upgrading and modernising the home, with the long-term intention of renting the property once the renovation is complete.
Mortimer Street Capital introduced the loan through Justin Trowse and Seona Patton. The twelve-month facility completed with retained interest at 27% LTV and enabled the borrowers to release equity from an unencumbered property they had purchased within the previous twelve months.
Alongside the property project, the borrowers operate a cosmetics trading business in the UK and overseas. They required funds quickly to support an imminent marketing campaign and to keep renovation works moving over the festive period.
Key elements of the deal included:
a £556k residential bridging facility
a twelve-month term with retained interest
equity release from an unencumbered property
proceeds used for both renovation costs and business marketing activity
Heather Mitchell (pictured), lending manager at Recognise Bank, completed the deal, with Matt Dalton, lending operations manager, overseeing the transaction alongside the wider lending team. This marked the first completed transaction introduced to the bank by Mortimer Street Capital, with close coordination between the broker, valuer, solicitors, the clients and the bank, enabling completion within a tight timeframe.
“This case shows the importance of listening closely to the broker and understanding the client’s position from the outset,” said Heather Mitchell, lending manager at Recognise Bank. “The borrowers had clear plans for the property and their wider business, and the funding needed to work around both residential and commercial elements.
“It was a relatively simple deal in structure, but the key factor was how quickly it needed to complete. Releasing capital for business purposes alongside a residential property is not something every lender will consider, so speed and clarity were vital.
“By taking a practical view of the property and the purpose of the loan, and by working closely with the broker and other parties, we were able to turn the deal around quickly and put a facility in place that kept everything moving.”
“This was our first completed deal with Recognise Bank and the process was straightforward throughout,” said Justin Trowse, managing director at Mortimer Street Capital. “The team understood the urgency of the funding and stayed close to the detail from start to finish. This enabled the clients to proceed with both the renovation and their wider business plans without delay.”
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