Capital Raised

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.

Mathew Phillips

Finance Broker


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


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

Finance Broker


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 to discuss your situation at any time that's convenient for you.

James Palmer

Senior Associate


0203 900 4322

Are you looking for similar property finance? I specialise in development and commercial finance for Clifton - I can find creative and commercially effective solutions for your project.

Sam ONeill

Senior Finance Broker


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


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


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.

Contact Us