Financing the Unfinancable: How a £250K Bridging Loan Transformed a £4.5M Church Property
- Laurie Baugh
- Aug 21
- 2 min read
Grace Rust, Finance Broker, secures funding where others wouldn’t, unlocking an £11M redevelopment opportunity.
The Challenge
Securing finance against a place of worship is notoriously difficult. Lenders typically shy away from churches and similar properties due to their unique legal and resale complexities.
This was the exact situation with a semi-commercial 5-storey property in London, valued at £4.5 million. The building included:
9 apartments
An office space
2 ground-floor shops
A church
The owners needed £250,000 to fund planning permission and professional fees (architects, solicitors, project managers) for a major redevelopment. Yet, time and again, lenders declined, citing the church element of the property as too risky.
The Solution
That’s when Finance Broker Grace Rust stepped in. Working with Charles Street Finance and Priority Law, Grace was able to secure a £250,000 bridging loan against the property, a deal no other lender was prepared to take on.
Grace comments:
“The key to unlocking this deal was understanding both the property’s unique structure and the lender’s appetite for semi-commercial risk. While most saw the church as an obstacle, we positioned it as part of a diverse income-producing estate, and Charles Street Finance really understood the bigger picture. It’s a fantastic result for the client and sets them up for their ambitious redevelopment plans.”
The Redevelopment Vision
The secured funding unlocks the next step in the client’s journey: a £2.5 million redevelopment project that will:
Relocate the church from the second floor to a prime ground-floor position
Remove one shop unit
Retain the office space
Refurbish all 9 apartments
This transformation involves structural changes (but no demolition or extensions) and will elevate the property’s value from £4.5 million to a projected GDV of £11 million.
The long-term plan is to refinance onto a commercial mortgage once works are complete, providing the Ministries with financial sustainability and a modernised property that better serves their community and tenants.
The Takeaway
Where others said “no,” Grace Rust and Charles Street Finance found a way to say “yes.”
This case study proves the value of working with an experienced broker who can navigate complex property types, structure a compelling case, and connect clients with lenders willing to think differently.
At Approved Finance Group, we help property investors and developers across the UK unlock smarter ways to fund their projects. Whether you’re looking at a bridging loan, development finance, or a long-term commercial mortgage, our team can tailor solutions to match your goals.
If you want to discuss your options, then please don'y hesitate to get in contact on 01908 429888 or click here to enquire today.
