Recognise Bank funds £1.75m PDR deal with new PBTL proposition
29 November 2021
Deal enabled the borrower to release equity towards next project
Recognise Bank has announced the completion of a £1.75m Professional Buy-to-Let (PBTL) deal for a PDR (Permitted Development Rights) scheme in Harrogate, North Yorkshire, the latest deal since the bank launched its new PBTL proposition earlier this month.
The deal was for the refinancing of an existing bridging loan on a portfolio of residential units at an LTV of 70%. Recognise worked with advisor Mark Craven, of NewSource Commercial Finance, on the deal for a private property investor, releasing equity to be used for the borrower’s next project.
Recognise Bank launched its PBTL loan in November, designed for professional landlords and property investors with portfolios of four properties or more.
James Meigh, Regional Director, North West and Yorkshire, Recognise Bank, said: “Not only was this was one of our first ever PBTL loans, it also involved the refinancing of a bridging loan, so slightly more complex than a standard buy-to-let mortgage. However, working closely with the advisor, Mark Craven, we were able to complete the deal within a matter of weeks from practical completion, giving the borrower access to equity to be used on a future development.
“It’s for cases like this, where experienced property investors need to work with lenders that understand their circumstances and the need for quick progress, that our PBTL product was created.”
Mark Craven, Director of NewSource Commercial Finance, said: “Recognise Bank’s PBTL proposition was an excellent fit for this particular case. It’s a great product and it suited the client’s requirements perfectly. He let out the property, paid off the bridging finance and raised capital for additional projects.
“We were especially impressed with the communications from the bank and its solicitors. It is inevitable that challenges arise, but in this case when they did, they were dealt with quickly and effectively. The loan was completed in a shorter time than similar cases I have advised on previously.”
Following a trial with a small number of advisers, Recognise Bank launched its new PBTL in November. It joins a line-up of commercial and property loans designed for SMEs, including Commercial Mortgages, Bridging Loans, Working Capital Loans and Professional Practice Loans.
The bank has a network of business development managers based in hubs in London, Birmingham, Manchester and Leeds, backed up by the latest cloud-based technology to provide quick lending decisions and fast access to funds.
In addition to small business loans, Recognise also offers a range of FSCS protected personal savings accounts, with business savings accounts being launched next year.
