Recognise Bank completes £700k bridging loan for Chelmsford asset

Recognise Bank has completed a £700,000 bridging loan to support the refinance of a commercial asset in Chelmsford.

The facility was agreed for an experienced commercial landlord with a background as an investor and developer. Introduced by Chirag Sheth of Infinite Finance, the six-month bridging loan was completed at 54% loan-to-value (LTV).

The loan was secured against a plot incorporating workshops and storage buildings. The funding was used to refinance an existing facility, providing a streamlined funding position for the borrower.

In addition, part of the facility has been allocated towards maintenance and upgrades to the site, supporting the ongoing management of the asset.

The borrower’s exit strategy is via a term loan, reflecting a clear longer-term approach to the financing of the property. The transaction progressed efficiently, completing in just 18 working days from approval.

Comments

Paul Bagan, lending manager at Recognise Bank, said: “This case involved the refinance of existing borrowing alongside a requirement to carry out ongoing maintenance and improvements to the asset.

“The borrower is an experienced commercial landlord with a clear plan for the property, which provided a solid basis for the transaction.”

“The structure itself was straightforward, but timing remained important. By working closely with the broker and maintaining a clear line of communication throughout, we were able to progress the deal efficiently and complete within a short timeframe.”

Chirag Sheth, broker at Infinite Finance, said: “This was a refinance with a defined exit through a term facility, so it was important to work with a lender that could take a clear and structured view of the case.

“The team at Recognise Bank were responsive throughout, which helped ensure the transaction progressed smoothly.”