Bridge Fusion Support for a Mixed-Use Property Bought at Auction

case study semi commercial

Loan Amount:
£134,000

Property Value:
£180,000

LTV:
70%

A property investor required funding for a property being bought at auction. The property itself featured both commercial and residential units, and as we progressed it became apparent that a Bridge Fusion loan would be the most appropriate option for the borrower.

The units themselves each presented unique, individual challenges for our underwriter. The kind that can put the long-term potential of an investment in doubt.

To ensure this deal’s overall potential held firm, we had to review each individual unit on its merit. This included analysing the case from both a residential and commercial perspective.

Checking the Details

One of the main concerns for a number of the units was that they required a bit of work to be desirable. Fortunately, our underwriter was able to confirm that refurbishment works were planned, and wouldn’t interfere with our deal.

There were also a few issues in the ownership structure of some of the units.  To mitigate this, we put plans in place to minimise the risks involved.

The borrower also had plenty going for them beyond these issues. They had evidenced refinancing exit strategies at the ready, alongside a long history of operating in the property market. As such, we were able to deliver funding in time for their auction-related time frame.

The Need for Bespoke Finance

Mixed-use investments can allow property investors to benefit from the best of both residential, and commercial opportunities. But, they can also lead to them struggling against their respective pitfalls.

This is why we launch new products such as our Bridge Fusion loans – to keep up with, and match the complexity of the property market. As borrowers asses their options post-budget, the need for bespoke financial solutions may become even more apparent.

No matter what challenges present themselves though, we will be there with a range of products suited for residential homes, commercial spaces, mixed-use properties, and everything in between.

FAQs

Do you have specific terms when buying a property at auction?

When purchasing at auction, we can fund through our standard bridging loans, which are available from £100k up to £15m for semi-commercial properties, and specifically for auction purchases. We use in-house funding and flexible criteria to make fast decisions, often within days. This lets you meet the tight auction completion deadline – typically 28 days – with confidence.

Do you accept owner-occupiers for semi-commercial properties?

Yes, we do. Our bridging solutions support properties with both commercial and residential elements, including cases where you plan to occupy part of the building. We assess the viability of the commercial portion and your exit strategy, and can provide funding if you occupy the commercial part and rent out the residential units.

How does Market Financial Solutions structure bridging loans for mixed-use assets?

Every mixed-use deal is different. We take time to look at the asset’s split between residential and commercial use, the tenant situation, and the borrower’s plan for the property. Whether it’s buying, refurbishing, or repositioning the asset, our flexible criteria mean we can tailor the facility to the real scenario – not just a tick-box form. For this borrower, that meant securing the right funding at the right time.

What types of clients do you accept for mixed-use properties?

We provide finance to a wide variety of borrowers investing in mixed-use properties, including individuals, SPVs, trusts and offshore companies. We also accommodate first-time landlords, overseas and experienced investors. Our flexible underwriting focuses on property viability, rental demand, and your exit plan – not rigid borrower profiles.

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