We Specialise In Arranging Bridging Loans for Commercial Property
Our commercial bridging loans are a short-term funding solution for company's, individuals and organisations wishing to purchase or refinance a commercial property.
We can provide funding for purchases and refinancing of commercial property thanks to our experience, reputation & the deep relationships we've built with a diverse panel of lenders whom we've worked with for many years.
The expertise of our dedicated commercial lending team ensures we're able to offer you the best possible bridge loan rates & overall transaction experiences.
Who Can Apply For A Commercial Bridging Loan?
As long as your asset(s) are in the UK our commercial bridging finance is open to both UK and foreign nationals including onshore and offshore borrowing vehicles.
Our short-term commercial bridging finance is ideal for those in need of capital in a hurry for short period of time.
So whether you are a trading limited company, an SPV or applying individually, as long as you are the legal property owner, or will be once the property transaction has completed, then we can obtain the funding you require without delay.
What Can We Offer?
Loan to value (LTV): Up to 70%
Charge: 1st & 2nd charges are available
Loan term: 3 to 36 months
Availability: England, Wales, Scotland & Northern Ireland
Loan amount: Up to £25m
Interest options: Serviced, Retained, Rolled-up
Interest rates: from 0.75% per month
Decision: Within one working day
Completion: 10-14 working days
Exit strategy: Sale or refinance
The Following Topics Are Covered
Author- Aakash Nagrani CeMAP CeRER
What Is A Commercial Bridging Mortgage?
How Do Commercial Bridging Mortgages Work?
When Would You Typically Use A Commercial Bridging Loan?
What Property Types Are Acceptable For A Commercial Bridge Loan?
What Is The Difference Between Residential And Commercial Bridging Finance?
Examples Of How Commercial And Semi-Commercial Bridging Loans Are Used
Why Are Commercial Rates Higher Than Those For Residential Loans?
What Is A Commercial Bridging Mortgage?
Commercial bridging loans are, as their name suggests, bridging loans which is secured against commercial property. They are used to secure funds quickly to purchase or release funds from a commercial property.
How Do Commercial Bridging Loans Work?
They are short-term, interest only loans which are usually arranged for up to 18 months (although some lenders offer longer terms).
During the term of the loan, interest is usually rolled into the loan and repaid at the end of term, or sooner if the loan is repaid early. As such, there are usually no monthly payments to make.
When Would You Typically Use A Commercial Bridge Loan?
They are used when funding is needed to secure a commercial property, often in situations where a commercial mortgage wouldn’t be appropriate.
This is usually either related to how quickly the funds are needed or because a commercial mortgage wouldn’t be available in current circumstances.
The main reasons for taking a commercial bridge are buying at auction, in other conditions where completion must take place quickly, or where refurbishment works will be undertaken on the property.
Other reasons include finding a property while it is sold, funding for new businesses and using a bridging loan to repay adverse credit prior to a term loan being taken.
What Property Types Are Acceptable For A Commercial Bridge Loan?
Our commercial products are often used to fund:
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Offices, professional practices
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Pubs, bars, and restaurants
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Hotels, guest houses and B&Bs
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Retail premises and business parks
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Warehouses, factories and industrial units
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Care homes
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Semi Commercial Properties
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Places of worship
What Is The Difference Between Residential and Commercial Bridging Finance
Residential bridging loans are for residential investments where the property investor purchases a property with the intention of letting the property, or refurbishing/converting to sell on for a higher value.
In comparison, commercial finance can help borrowers purchase a building that will produce a valid income for a business or company. Whilst some areas of the property may feature a residential dwelling(s). The property will also have an element of commercial activity going on in some of the space.
Examples Of How Commercial And Semi-Commercial Bridging Loans Are Used
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Moving office – Buying a new office building
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Converting residential property into semi-commercial
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Increasing company assets
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Renovations or conversions
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Starting a new business venture
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Auction deals
Why Are Commercial Rates Higher Than Residential Rates?
You will often find commercial loan rates to be higher than those for a residential bridging loan, but why is this? It all comes down to risk.
Residential properties are often easier to liquidate than commercial assets, meaning that lenders often put more on the line when lending on a commercial asset.
To balance out this increase in risk, rates are often, therefore, higher to safeguard the lender.
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