Refinancing a Commercial Asset for an Experienced Property Investor

Loan Amount:
£1,350,000

Property Value:
£1,920,000

LTV:
70%

Some borrowers require additional due diligence from our underwriters, especially when their case isn’t a standard purchase. A client turned to us to help them refinance and clear an existing facility against a commercial property.

The borrower had a complex background, but our underwriter carried out the required due diligence to thoroughly assess the situation, and keep the deal moving. Commercial investments can be complicated but in this case, the underlying asset was strong.

To make sure this deal held long-term potential, our underwriter worked closely with the valuer involved, and made sure a solid exit strategy was available.

The benefits of a strong commercial tenant

Our refinancing funding was to be used for a commercial property, which had a well-known company as a tenant. Whilst this made us comfortable with the potential revenue, for added security, our underwriter received a copy of the original lease.

This confirmed that rent from the tenant would be stable, and there were clear terms in place for rent reviews. Meanwhile, the valuer confirmed the property offered desirability to the owner occupier, or investment side of the market. This would create demand for the premises down the line.

Also, the borrower evidenced that plans were in place to get their refinance exit strategy underway. With these assurances, and the borrower’s vast experience in the market, we were happy to deliver funding.

Commercial property may be worth a second look

Investing in commercial property in the current market may be tricky, with flexible working still prevalent across the UK. But, it’s possible to generate healthy yields in certain sectors, such as the leisure, industrial, and retail fields.

What’s more, there are many strategies available to commercial investors. On top of acquisitions and refinancing plans, borrowers can also engage with renovations, conversions, or releasing capital from assets to fund other ventures.

At Market Financial Solutions, we have many products to suit a range of investment strategies, and complex borrower circumstances. This can include corporate setups, trusts, and more. Regardless of whether you’re looking at a residential purchase, commercial expansion, or refurbishment plan, we may be able to help.

FAQs

Why is bridging finance beneficial when refinancing a commercial property?

Bridging finance provides the speed and flexibility often needed when refinancing a commercial property under time pressure or in complex scenarios. High street lenders can take weeks or months to complete underwriting, especially if the asset includes multiple tenants, irregular lease structures or a mix of commercial and residential use. With bridging finance, investors can move quickly to repay an existing facility before it matures, avoiding default or penalties.

Our solutions are particularly useful when a borrower needs to unlock equity at the same time, perhaps to reinvest elsewhere or restructure their portfolio. Because we assess each case individually, we’re able to factor in the asset’s income potential, exit strategy, and borrower profile to build a deal that supports broader financial goals. It also provides breathing room while longer-term finance is organised.

Can you refinance a commercial asset and release equity at the same time?

Yes, we regularly tailor refinancing facilities that both replace existing debt and release excess equity from commercial assets. In this example, we structured a bridge to refinance the current facility, reduce repayment pressure, and free up capital to support new business or investment goals, all within a single transaction. This approach ensures clarity and efficiency for borrowers even in complicated circumstances.

What makes your refinancing offering stand out in a challenging market?

In a tighter lending environment, we offer speed, flexibility, and in-house decision-making. We deliver an initial terms within 4 hours and funds can be issued in as little as three days once your due diligence is in place. Because we manage our own capital and underwrite internally, we can respond quickly to shifting market conditions, asset type, tenant profiles, and ownership structures, providing certainty even where traditional lenders may falter.