Bridging finance secures historic Norfolk pub acquisition
A specialist lender has provided £244,000 in bridging finance to facilitate the purchase of a Grade II listed public house in Swanton Morley, Norfolk, as the hospitality sector continues to face closures across the country.
Black & White Bridging structured the deal using a combination of first-charge commercial bridging and second-charge residential bridging finance. The borrowers, a married couple, are acquiring the building which dates to 1610, with plans to undertake minor refurbishments before reopening the establishment.
The financing structure uses both properties as security, with the commercial bridge secured against the pub itself and the residential bridge adding a second charge. The upper portions of the building will be let to third parties. Broker Aaron Blackwell introduced the loan to Matt Yates, relationship director at Black & White.
Pub sector challenges
The transaction comes as Britain’s pub sector faces significant headwinds. According to Yates, the country is losing one pub per day, with an estimated 5,000 jobs expected to be lost this year due to closures driven by rising operational costs.
The dual-security approach enabled the borrowers to close the funding gap for the acquisition. Blackwell noted that the specialist structure provided flexibility for the borrowers in reviving the historic property.
The financing approach reflects broader challenges in the UK property market as conditions tighten, with specialist lending structures becoming increasingly relevant for commercial property acquisitions. The transaction also occurs against a backdrop where market recovery has stalled in recent months.
The deal demonstrates how mixed-use properties with both commercial and residential elements can access funding through structured finance solutions, particularly for assets with heritage designations that may require specialist consideration.
