
Loan Amount:
£2,500,000
Property Value:
£3,850,000
LTV:
65%
Fortunately, many commercial sectors that were hit by the pandemic are now recovering. This creates opportunities for property investors who want to jump on that momentum, and the borrower approached us with precisely such a plan
They required commercial funding as their existing facilities were coming to the end of their terms, and they needed a bit of breathing space to organise their affairs, and secure the best tenants possible.
Before we could progress however, we had to address some immediate concerns.
Analysing the sector’s potential
The underwriter began by analysing the wider market. The sector the borrower was investing in had shown remarkable recovery in recent years, but there were still short-term fluctuation risks that had to be taken into account. To mitigate this, we limited the LTV to both protect us, and ensure the deal never slowed down for the borrower.
We then turned our attention to the rental situation. The borrower hadn’t secured tenants yet, which posed additional challenges. But the underwriter combed through the relevant information and documentation and saw the borrower was well into discussions with a number of potential tenants.
This assured us they’d be able to have tenants in place relatively quickly, and this would facilitate their long-term refinancing exit strategy. Seeing the borrower had options available to them for this, we were happy to deliver funding.
Ready for what’s on the horizon
Commercial properties may prove to be especially tempting over the coming months. The return-to-office trend isn’t slowing down, and various infrastructure and investment plans across the UK are set to ramp up business efforts.
We recognise this potential at Market Financial Solutions, which is why we’ve tweaked our product ranges in recent weeks. We aim to support property investors who want to expand in the commercial market with reduced rates for commercial loans within our Bridge Fusion range, and increased maximum bridging loan sizes for simple semi-commercial and commercial loans.
Wherever opportunity emerges in the property market, we will be there to support property investors with tailored funding solutions.
FAQs
What types of commercial properties can you provide bridging loans for?
Market Financial Solutions can fund a wide range of commercial and semi-commercial properties – from offices and retail units to light industrial and mixed-use buildings. We take a pragmatic view of each opportunity, focusing on the property’s value and potential rather than restrictive tick-box criteria.
Can Market Financial Solutions provide funding even if the property doesn’t have tenants yet?
Yes. We consider the full picture, including the borrower’s experience, plans, and market potential. Even if a property isn’t tenanted, we evaluate the deal if there’s a credible path to generating income or securing tenants shortly after completion.
How do you assess risk in recovering or fast-changing commercial sectors?
Our underwriting team looks closely at each sector’s outlook and performance trends. By combining in-depth market analysis with flexible deal structuring, we can ensure that the loan works for both the borrower and the risk profile. This might involve adjusting the loan-to-value (LTV) or tailoring exit timelines to match market conditions.
I have a time-sensitive commercial deal. Can you handle it?
Speed and flexibility are at the core of our approach. Every case is assessed by an experienced underwriter who can make swift, informed decisions. This allows us to complete large and complicated commercial loans in in short period of time, ensuring clients can act quickly when the right investment or refinancing opportunity arises.
Can you support investors looking to refinance or reposition their commercial assets?
Absolutely. Many clients turn to Market Financial Solutions to refinance existing facilities, release capital, or reposition properties for stronger returns. Whether it’s stabilising cash flow, improving occupancy, or preparing for a long-term exit, our commercial bridging finance provides the breathing room needed to execute a clear strategy.
Further reading:
- Featured Product: Commercial & Semi-Commercial Bridging Loans
- Explainer Video: Commercial Bridging Loans
- Tool: Bridging Loan Calculator
- Guide: Commercial Property – The Complete Guide
- Blog: Commercial property tax guide – what taxes do investors need to pay and what are the allowances?
- Blog: Commercial property valuation: The key elements
- CPD Course: Commercial Property Training Certification