
BRIDGING LOAN TO CONVERT WAREHOUSE TO A CHURCH
Most of us are familiar with church properties being converted to apartments, offices, restaurants and sports halls. A conversion from commercial to religious use is another matter…
The Scenario
The pastors of a south London church, which was currently renting premises as their place of worship, had found warehouse premises for sale in Croydon which could be suitable for conversion to a church and community centre.
The 9,231 sq ft warehouse space was valued at 830K.
Its future valuation, with planning permission for multi-use as a church and community centre, was estimated at £1.2M. With residential planning permission it would sell for upwards of £2M.
The church were able to put down £1.3M towards the purchase price. The vendor was willing to give a discount and sell for £1.87M if the church were able to move quickly. We were approached by one of the pastors to secure bridging finance.
The problem with finding a suitable lender for a church is the issue of “reputational risk”. If the lender should ever need to repossess the property it would not make a good headline in the local paper.
The Solution
We have worked with a number of churches in the past, and with the exception of those managing an estate of historic properties have found that most of them have strong financial support and a history of paying good rents.
We matched our church clients with one of the few specialist lenders willing to advance a bridging loan to a charity. A bridging loan of 540K would allow them to purchase the premises and apply for D1 non-residential institutional planning permission.
As soon as planning permission is granted they will be able to refinance with a commercial mortgage and their future will be secure.
Jack Spillane
Finance Broker
Bristol
0117 959 5094
Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need.
Mathew Phillips
Finance Broker
Bristol
0117 959 5094
Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.
Alex Chambers
Senior Finance Broker
Bristol
0117 403 4324
Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.
Luther Yeates
Senior Finance Broker
Bristol
0117 244 5561
Are you looking for a similar type of property finance? I have extensive experience finding residential and investment property finance for UK and international clients. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.
Sam ONeill
Senior Finance Broker
Bristol
0117 959 5094
Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.
Robert Gibb
Senior Finance Broker
Bristol
0117 959 5094
Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.
Adam Arnott
Associate Director
Bristol
0117 205 0214
Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.