Recognise Bank completes £801k bridging loan for Liverpool mixed-use redevelopment scheme

22 June 2026

Recognise Bank has completed an £801,500 bridging loan to support the acquisition of a substantial mixed-use property in Liverpool with plans for redevelopment and future residential conversion.

The borrower is an experienced property developer operating via an SPV and is a repeat client of the bank. The transaction represents the fourth completed deal between the parties.

The asset is a four-storey Victorian building previously used as office accommodation alongside a 30-bed hostel, with associated car parking. The borrower has secured planning permission to convert part of the building into a 34-bed HMO, while retaining elements of the existing hostel and mixed-use configuration.

The facility was structured as a 12-month bridging loan at 70% LTV and was introduced by Mark Jerman of Watts Commercial Finance.

The funding will support the acquisition of the property, with the borrower intending to progress its business plan before seeking to amend planning consent post-completion to deliver a larger residential scheme of up to 45 apartments.

The transaction required a considered approach given the scale of the building, its mixed-use history, and the borrower’s phased development strategy. The combination of existing use, permitted planning, and proposed future changes required careful assessment. This ensured the structure supported both the immediate acquisition and the borrower’s longer-term exit strategy.

Recognise Bank worked closely with the broker and borrower to assess the asset and its transition pragmatically. The team maintained oversight throughout the process, aligning the facility with the borrower’s experience and track record, and delivering within the required timeframe to support the purchase.

Paul Bagan, Lending Manager at Recognise Bank, said:

“This was a perfect example of how we support experienced developers with assets that have multiple potential uses and evolving planning strategies.

“The property combines an existing income-generating use with a clear repositioning opportunity, and the borrower has a proven track record of delivering similar schemes. We took a pragmatic view of both the current asset and the future plans, ensuring the structure worked for the acquisition while providing flexibility for the next stage of the project.

Having worked with the borrower on several previous transactions, we were able to move efficiently and with clarity, maintaining close communication with the broker throughout to ensure the deal progressed smoothly.”

Mark Jerman of Watts Commercial Finance added:

“This asset was complex, with many moving parts, so it was important to work with a lender that could look beyond the current use and understand the borrower’s future plans.

“Recognise Bank gave us clarity from the very start and took a decisive view on how the transaction should be structured. That certainty is exactly what brokers need when trying to move cases like this forward.”

Recognise Bank provides short-term property lending across residential and commercial assets, supporting acquisitions, refinances and transitional assets with a straightforward and relationship-led approach.

To learn more about Recognise Bank’s bridging finance, visit: https://www.recognisebank.co.uk