LHV Bank has provided a loan of £750,000 for the acquisition and refurbishment of a 62-bed care home in the north of England.

The property, which was closed at the time of purchase, is set to undergo extensive renovations and reopen under the management of the buyer, Navjot Singh, who operates eight care homes across the region.

This case, introduced by Graham Brett of Empire Finance, presented several challenges and opportunities. Singh, an experienced care home proprietor, needed swift funding to meet a hard deadline for the acquisition.

LHV Bank stepped in to provide a bridging facility covering 93% of the purchase price, and the deal was completed within 10 working days of obtaining credit approval, ensuring the client’s deadline was met.

The lending solution included a 24-month bridging facility to support the purchase and renovation phase, with an approval for a commercial mortgage term exit. This exit will be triggered once the occupancy criteria are met, with preferential terms on conversion to term debt, showcasing LHV Bank’s innovative approach to meeting client needs.

The facility was secured via a mixture of first legal charge, debenture, company guarantees, personal guarantee and charge over cash.

Conor McDermott (pictured), director of SME lending at LHV Bank, said: “This case highlights our capability to provide substantial loans under tight deadlines, particularly for experienced operators like Navjot Singh.

“The collaborative approach, led by Amarron Frederick, lending director at LHV Bank, with Empire Finance and the efficient legal work by Blacks Solicitors LLP were crucial in meeting the customer’s needs swiftly. This was our first bridge to term facility, and the success of this project demonstrates our flexibility and commitment to innovative financing solutions.

“LHV Bank’s loan book continues to grow robustly every month, reflecting our ambition to become a significant provider of commercial real estate investment loans and trading loans to SMEs in the UK.

“Intermediaries are central to our distribution strategy and along with our partnership with the NACFB they will help us meet our healthy appetite for lending and growth.”

Graham Brett of Empire Finance added: “It’s refreshing to work with a lender that’s willing to assess a proposal based on the commercial risks specific to the transaction. A loan to purchase price in excess of 90% is not a transaction that most lenders would consider and by working closely with the client and LHV, we were able to structure a financing package that delivered the required funding within a tight timescale.

“We work hard to understand the needs of our clients, and our knowledge of the diverse lending marketplace allows us to tailor financing packages to deliver positive outcomes such as this.”