A former pub owner has obtained a heavy refurbishment bridging loan to convert his previous business premises into a residential dwelling, according to Precise Mortgages, which arranged the financing in partnership with broker KIS Bridging Loans.
The borrower had secured planning permission for the change of use from commercial to residential before approaching lenders. Precise provided 70% loan-to-value funding on day one, with additional capital available through staged drawdowns as construction progresses.
Regulated conversion financing
The transaction involved a regulated bridging facility due to the borrower’s intention to occupy the converted property as his primary residence. Ross Williams, specialist finance account manager at Precise, worked with Sam O’Neill, senior bridging consultant at KIS Bridging Loans, to structure the deal.
“This case helps illustrate just one of the many ways that bridging can help provide a sound financial solution towards a client’s objective, which in this case was very much a personal focus,” said Alan Kimber, head of bridging at Precise.
Kimber noted that the specialist bridging team draws on the lender’s 15 years of experience in the bridging market.
Broker perspective on complex cases
O’Neill from KIS Bridging Loans stated that regulated pub conversions requiring drawdown facilities fall outside typical bridging criteria. “A regulated pub conversion requiring drawdowns is not a typical bridging case and this is where it’s important to look beyond the headlines of the deal,” he said.
The broker cited the working relationship with Precise’s underwriting team as a factor in completing the transaction. “Whilst complex deals need to tick a few boxes to fit criteria, it’s important that all options are explored to ensure the client isn’t left with an unnecessarily expensive outcome,” O’Neill added.
The case reflects the bridging market’s capacity to finance non-standard property conversions, particularly where borrowers have personal connections to the asset being refinanced. The staged drawdown structure allows borrowers to access capital as refurbishment work progresses, rather than requiring full funding upfront.