Shawbrook provides £11.5m permitted development bridge

Published on

Shawbrook’s commercial mortgages team has delivered a 24-month long permitted development bridging loan within six weeks.

The short term team was approached by its broker partner, West Rock Capital, and a long-established client who specialises in permitted developments. The client was looking for a two-year bridging loan to purchase a commercial premises on Milton Keynes train station.

Worth £16m, the client required a £11.5m facility for the acquisition of this unusual property with the aim to sell in 18 to 24 months and with the potential of redeveloping into residential units. There were a few hurdles to navigate with this bridge, including the key risk that the premises is located on a train station. However, the valuer saw no issue with the purchase or potential planning issues regarding converting into residential units so the team proceeded with the application.

Using Shawbrook’s STL3 product, providing the ability to service the interest, the short term team were able to fund this purchase at 70% LTV across a 24 month term, allowing additional time in case of any refurbishment or planning delays.

Westley Richards, director at West Rock Capital, said: “I am delighted to have successfully enabled our client to secure this exciting opportunity. Our extensive experience in property finance and long-term relationship with Shawbrook ensured our client was able to complete this complicated acquisition on time.

“This was a great team effort with Shawbrook and I am looking forward to working on more opportunities going forward.”

Shrena Patel, business development manager at Shawbrook, added: “There were some hurdles and moving parts that we had to overcome on our way to completing in the deal. However, both West Rock Capital and our sales and underwriting teams worked brilliantly together to ensure that we provided a solution for the client so that their purchase could go ahead as scheduled.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Mortgage brokers bullish on rate cuts

More than half of mortgage brokers (52%) say they expect at least two cuts...

Former Nikko chief warns CGT on homes would punish owners

A leading City figure has warned that imposing capital gains tax (CGT) on primary...

The Swansea renews sponsorship of Swansea RFC for 2025/26

Swansea Building Society has renewed its sponsorship of Swansea RFC for the 2025/26 season,...

HSBC cuts rates across residential and buy-to-let offerings

HSBC UK has announced a wide set of rate reductions across its residential and...

Staple food prices climb as retailers warn of rising costs

Shop price inflation accelerated in August, driven by higher food costs and new government-imposed...

Latest publication

Latest opinions

Bridging the Pond: How large is the US bridging finance market, and compared to the UK?

When we first got started with LendInvest in the UK, post the financial crisis,...

Passing the affordability exam

As teachers and students of various ages have spent August nervously opening exam results...

Investors are changing their approach – and lenders should too

The buy-to-let market never stands still, but the pace of change in recent years...

Leasehold fees, specialists and the need to shop around

Leasehold properties account for around 20% of all dwellings in the UK, and while...

Other news

Mortgage brokers bullish on rate cuts

More than half of mortgage brokers (52%) say they expect at least two cuts...

Former Nikko chief warns CGT on homes would punish owners

A leading City figure has warned that imposing capital gains tax (CGT) on primary...

The Swansea renews sponsorship of Swansea RFC for 2025/26

Swansea Building Society has renewed its sponsorship of Swansea RFC for the 2025/26 season,...