BRIDGING LOAN TO CONVERT WAREHOUSE TO A CHURCH

Area
Croydon,London
Capital Raised
£540K

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.

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