Recognise Bank has provided a £2.025 million bridging loan to refinance existing debt on a residential development site in Hertfordshire, completing the transaction within two weeks of initial enquiry.
The 12-month facility was arranged at 60% loan-to-value for a property developer with over 30 years of experience in commercial property, land promotion and asset management. The security comprises a two-acre site with planning consent for two detached six-bedroom homes.
Planning and exit strategy
The borrower secured planning consent through a series of progressive enhancements to the site. The exit strategy involves selling both plots as land with planning consent, with the first plot to be marketed following loan completion and a prospective purchaser already identified for the second.
The deal was introduced by Lyndon Miles of UK Adviser Group. Tom Ravenscroft, lending manager at Recognise Bank, led the transaction.
“The borrower has significant experience across property development, investment and land promotion, and there was a clear rationale behind the refinance,” said Ravenscroft. “The strength of the site, with planning already secured for two substantial homes, gave us a solid basis on which to assess the transaction.”
Market context
The rapid completion timeframe contrasts with broader market conditions, where UK property sales have fallen 7.3% year-on-year amid rising fall-throughs. The bridging finance sector continues to serve developers seeking short-term funding solutions for land and development projects.
Miles commented that the lender “understood from the outset what was required and took a clear and practical approach to the deal,” adding that completing within two weeks “demonstrated the value of having a lender that can assess a case quickly.”
The transaction represents a typical use case for bridging finance in the development sector, where experienced borrowers with planning consent in place seek to refinance existing debt ahead of land sales. While estate agency job vacancies have reached 1,300 across England, specialist finance providers continue to support the development pipeline through short-term lending facilities.
