- Min. loan amount: £100k
- Max. loan amount: £15m
- Max. LTV: 75%
- Interest rates: variable rate from 0.60% (+BBR), fixed rate from 1.00%
- Charge type: 1st charge, 2nd charge to £5m
- Term: 3 – 21 months
- Completion time: 3 to 10 days on average
- Exit fee: POA
- Location of property: England, Wales
Commercial & Semi-Commercial Bridging Loans
Semi-/commercial bridging finance within days
Our commercial calculator is here to provide you with a detailed quote for your next commercial investment. Available for both commercial and semi-commercial, take your first step towards your commercial bridging loan.
Commercial Bridging Loans:
Find answers to your key questions below:
Commercial bridging finance is a loan that can be used on a commercial property. This means that the property is used for business purposes and could house a company and its employees. This may include, but is not limited to:
- Office blocks
- Shops and retail outlets
- Restaurants and Pubs
A semi-commercial bridging loan is one which can be used on property that is mixed-use, in that it has both residential and commercial elements in it, all under one roof. An example would be a block of flats above a shop.
Bridging loans can be used on both types of properties. They could be used for acquisition of semi-/commercial property, or releasing capital for other ventures.
You can borrow from £100k to £15m for semi-commercial and commercial properties. It will all depend on the loan to value (LTV). We lend up to 75% of the properties value.
You can use semi-commercial or commercial bridging finance for many different projects.
This can include:
- Acquisition of a property
- Acquisition of a portfolio of properties
- Purchase, renovation and sale of a property
- Releasing of capital from an asset for another investment venture
- Re-financing an existing arrangement for more flexibility
The types of property that can be purchased with this type of bridging loan are commercial property or semi-commercial property. This means that some economic activity will need to be ongoing within at least a portion of the property for semi-commercial, or in the whole property for commercial.
Bridging loans for commercial property:
- Office blocks
- Shopping centres
- Pubs and restaurants
Bridging loans for semi-commercial property:
- Flats or maisonettes above a restaurant
- Apartments above a shopping centre
Our bridging loans for commercial property can be issued in as little as three days, supporting investors facing tight deadlines. Where a project is at risk of falling through, due to unexpected complications or shifting priorities, specialised finance can keep a purchase afloat while long-term solutions are found.
This speed can also help borrowers jump on an opportunity before it’s too late. Entrepreneurial investors may spot an opening in a market, which may not be around for long, or could be snapped up by a competitor. Bridging can help investors take advantage of these kinds of opportunities immediately. By comparison, mainstream finance can take months to complete.
Semi-commercial bridging loans can be arranged much more quickly than finance from a mainstream lender such as a high-street bank. At MFS, we can move essentially as quickly as the borrower’s solicitors can. We are able to provide funds in as little as three days, regardless of the complexity of the case. We also respond to all enquiries within four hours.
The fees that are relevant to bridging loans for commercial property include a commitment fee, which is refunded on drawdown. There will also be an arrangement fee which would be from 1% of the loan amount. Some lenders also charge an early repayment charge, however here at MFS we do not. We simply have a minimum loan term of 3 months. There may also be an exit fee, which is discussed on a case-by-case basis and at the beginning of the process, to ensure all charges are clear.
Residential loans are for residential investments – where the property investor purchases a property with the intention of letting the property to a single tenant or multiple tenants for them to live it. Or, refurbishing/converting the asset to sell on for the same purpose.
In comparison, commercial bridging finance can help borrowers purchase a building that will produce a valid income for a corporation or company, or house a company. Whilst some areas of the property may feature a residential dwelling(s) (which would make it semi-commercial), the property will also have an element of commercial activity going on in some of the space.
You will often find commercial bridging finance rates to be higher than those for a residential loan, but why is this? It all comes down to risk.
Residential assets are often easier to liquidate than commercial properties, meaning that lenders often put more on the line when lending on a commercial asset. To balance out the increase in risk, rates are often higher to safeguard the lender.
As each case we deal with is unique, the specific paperwork needed will be dependent on the circumstances involved. However, some of the standard documents/information that we request includes:
- the full address of the security property, value/ purchase price, confirmation of any outstanding balances
- whether the security property is currently tenanted or vacant and the rental income
- the mode of repayment/exit strategy
- whether the property is being purchased in a personal or company name
- purpose of the loan/ evidence of how funds will be utilised
For commercial & semi-commercial bridging loans, there may also be more due diligence placed on asset & liability statements.
Property investors can utilise our commercial bridging loans through multiple routes. They can apply as individuals or through company setups. What’s more, we can also work with foreign entities and those based abroad. Our flexibility allows us to service investors who may struggle on the high street. We’re often able to service investors with adverse credit histories, CCJs, missed mortgage payments, defaults, bankruptcies and the like.
Call or email us today to get your application started.
You can call on +44 (0) 20 7060 1234 or email email@example.com and you will be connected with one of our dedicated underwriters, who will discuss your requirements with you, and guide you through the process.
Get in touch via phone, chat or email about your query, however complex it might be. We will try our best to say yes to you, instead of finding a reason to say no.