Commercial Property Investors Don’t Need to Be Held Back by a Few Bad Financial Years

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Commercial properties can be tricky for investors to deal with. They can come with added complications when compared to residential assets, and values can be swayed by the type of industry the building accommodates.

But, while commercial assets can offer up challenges, our underwriting practices and products can deliver plenty of solutions to match. Our underwriter, Jemima Hayes, broke down how we may be able to find a way forward for an investment in a potentially difficult property.

“An owner-occupied care home would likely prove to be hard to accommodate,” she said.

“This kind of commercial investment and setup would require a lot of due diligence. From a lending perspective, we’d really have to make sure everything lined up perfectly before we could progress.”

Much of this would depend on the exit strategy. Which, as Jemima explained, even if there were many, we’d still need to move forward carefully.

“Many borrowers investing in this space have faced a tough few years.

“A typical investor is unlikely to have particularly good accounts, most likely due to Covid-19 related difficulties.

“We’d be able to accommodate this, but we’d want to see evidenced back up exit strategies at the ready.”

Jemima could also take steps to make this case more palatable in other areas.

“We would lend against the bricks and mortar value of the property,” she continued.

“So, if we were to also take into account the trading value, the LTV on this kind of deal could be quite low, which would make us more comfortable.”

As for the exit options, this kind of property can present a number of options to counterbalance the risk involved. There are the usual refinance or sale options, but Jemima pointed out a few other unique options.

“These kind of sites can include multiple plots of unused land.

“If a borrower plans to work with developers to sell or utilise this land, that would make a great exit strategy for our loan, for example.”

Regardless of what commercial related challenges our borrowers face, we will always do what we can to support their investment goals. Evidently, our underwriters have plenty of tools at their disposal to get complicated deals over the line. We’ll use them wherever deemed necessary.

FAQs

Why do investors sometimes need a bridging loan even when they have valuable assets?

Many property investors hold significant equity in existing portfolios, but that value can’t always be accessed fast enough through traditional lenders – especially if they’re waiting on a sale or refinancing. We can help to release equity tied up in other properties so investors can secure a new opportunity. Market Financial Solutions can step in with a bridging loan that can give clients the freedom to act without having to hold back their plans.

What makes bridging finance a good solution for portfolio investors?

Investors with multiple properties often find themselves asset-rich but cash-flow poor, especially when juggling purchases, sales, or refurbishments at the same time. A bridging loan allows them to tap into the equity they already have, giving them the flexibility to move on the next opportunity without waiting for slow processes or sales to complete. At Market Financial Solutions, we tailor each facility to fit the borrower’s wider portfolio and real-world goals.

How does Market Financial Solutions keep this process clear and stress-free?

Unlocking capital across existing assets needs careful handling – from valuations to legal checks. We’re upfront about what we require and how the facility will work, so there are no surprises later. Throughout the process, we stay in touch with the borrower, their brokers, and solicitors to keep everything on track. This transparent approach helps investors move quickly and confidently – without holding back their plans for growth.