What is a commercial bridging loan?
Similarly to a Residential Bridging loan, Commercial Bridging Loans are used when there is a gap in financing that needs filling quickly.
For a Commercial Bridging Loan, the overall use of the property has to be more than 40% commercial. For example, if you were buying a retail unit with a at above it, the retail unit’s value would have to be more than 40% of the total value.
For landlords, or a landlord company, the exit strategy would usually be to refinance the loan onto a Buy-to-Let Mortgage – typically after doing some renovations to make the property suitable for rental.
For commercial units that are bought using a Commercial Bridging Loan, the exit strategy usually involves refurbishing the unit then selling it or refinancing onto a conventional Commercial Mortgage.