- Vacant chapel with no certainty of planning being granted required bridging finance
- Major, last-minute legal complication just prior to the expected funding date presented a significant challenge
- Case management needed to be on-point and robust to meet a tight, two-week completion timeline for the property purchase
Our client, an experienced investor with a team in place to deliver architectural and planning management sought our help to source funding to complete the auction purchase of a 150-year old chapel in Swansea.
With a tight deadline involved for the completion, Adam Powell, Head of Business Development at The Property Finance Collective described the case as ‘challenging from the get go’
Our client had a deadline of two weeks to complete the purchase of the property with the intention to apply for planning permission and convert it into 10 residential flats over three floors, utilising the existing stone walls and roofs to maintain the original aesthetics of the building.
Vacant properties, with no certainty over planning permission being granted can significantly limit funding opportunities and lead to lenders heavily caveating their terms, so having other churches in the area which had already been converted setting a precedent was important.
Weighing up all these factors, The Property Finance Collective commercial team sourced from its large panel, a lender willing to lend in difficult and risk-averse markets who would view the proposal as very much a ‘does it make sense scenario’ with consideration also given to the applicant’s exit to development finance, assessment of the works required and the end GDV.
By navigating the complexities of the case together with the lender and their legal team, we were able to secure a short-term bridging solution with a 65% LTV which enabled the client to progress with the purchase of the chapel.
Adam, Head of Business Development at The Property Finance Collective commented:
“Whilst time was limited with only 2 weeks to complete, consideration had to be given to ensuring the application process was coordinated efficiently and communication between all stakeholders remained constant throughout the process.”
In addition, Adam praised the lender for their ability to react to a situation that arose just prior to the excepted funding date, saying, “We hit a major legal hurdle a couple of days away from completion, but were able to find a solution that satisfied all concerns”
For more information on how The Property Finance Collective can help you with tailor-made, cost-effective, property finance, no matter how big or small your project, get in touch on 01775 713777.