Building worked started in November 2009 on a new atrium
Pier Avenue Baptist Church was built in 1929 and thanks to an anonymous gift, work is progressing on a new extension.
Reverend Sean Fountain told BBC Essex the church was given the gift of a house in Clacton-on-Sea.
The Baptist Church had wanted to build an atrium which was previously expected to take up to eight years to complete.
The generous donation of the house, which has subsequently been sold, allowed building work on the Clacton church to start in November 2009.
Rev. Fountain said he was unable to reveal more details about the anonymous benefactor.
"He did ask if he could remain anonymous, as he did not want to be seen to be directing the church," said Reverend Fountain.
"A gentleman in the town invited me to have a chat with him and he decided he wanted to see the work of the church progress and gave me his house," he said.
The man has not made himself homeless and is now living elsewhere.
"This gift has made the building project eight years sooner," he added.
The church regularly has a congregation of over a hundred
"This is really a seven-day-a-week facility and we have something happening here for Baptist and non-Baptist alike," said Rev. Fountain.
"The house raised about £150,000 and we have received grants from Essex County Council, whilst other charitable trusts have contributed, along with fund raising from the church itself," he said.
It is hoped the new building will be finished by the end of January 2010.
Rev. Fountain believes there was some Divine intervention in this situation.
"I'm astonished at how generous God has been in providing this," he said.