Commercial Bridge Loans
Commercial bridging loans are, bridging loans which are secured against commercial property. They are used to secure funds quickly to fund commercial property purchases or release funds from an existing commercial property.
Direct access to decision makers meaning terms in days and funding in weeks
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Commercial Property types we like
Office
Industrial
Retail
Business Park
Mixed Use
Residential Blocks & HMO's
Hotel
Leisure
Medical
Car Park
Educational
Gym
Logistics
Storage
Trade Counter
Petrol Station
Warehouse
Pub
Religious
Restaurant
Shop and Uppers
Worth taking a few minutes to find out if we can help? Call on 0203 637 8418 or email [email protected]
“There really aren’t many lenders who can understand and turn around deals like this within such a tight timeframe”
― Gitesh, Sunderland, Commercial Property Broker
“Their speed and flexibility was the selling point”
We didn’t want to refinance our existing commercial property with a bank on a minimum 2-year tie in, so Proplend’s speed and flexibility was the selling point. Initial contact was easy and positive. Their tailored bridging offer within hours made this an easy decision. Thanks Proplend― Jonathan, Birkenhead, Proplend Borrower
"Proplend has easy borrowing criteria to understand and the lending manager (Stewart Bruce) showed his experience throughout. The platform was easy to use and I will definitely be using it again."
― Shaz, London, Proplend Borrower
“Impressed by their knowledge and professionalism”
Proplend bridging was recommended to me by an industry contact for our commercial property purchase. I was impressed with the borrowing team’s knowledge and professionalism and would recommend the platform to others.― Alan, Flintshire, Proplend Borrower
Bridge Loans
What are Bridge Loans?
Bridge Loans are loans which are secured against commercial property. They are used to secure funds quickly to fund commercial property purchases or release funds from a commercial property.
How do Bridge Loans Work?
They are short term interest only loans which are usually arranged for up to a maximum of 18 months on non income producing properties. In order to get a commercial bridge loan you will need to offer a commercial property as collateral which the Lender will take a 1st legal charge over. If the Borrower is a SPV, the Lender will usually also require a Debenture over the SPV and a Personal Guarantee from the sponsor.
During the term of the loan, interest can be serviced, rolled up or deducted from the loan at drawdown, the capital part of the loan is repaid at the end of the loan term.
What information do I need to provide?
- Lenders make decisions based off information
Details about the property:
- address
- type of property
- freehold or leasehold
- purchase price or current valuation
- if already owned, purchase price when purchased and anything you have done to the property since then
- EPC’s
- an old valuation, if you have one
Details about you:
- who is the Borrower (personal or SPV)
- if SPV, are there any other assets held in the SPV
- if SPV, ID for directors and shareholders >25%
- Property experience / CV
- Do you have any bad credit (tell in advance)
- Assets and Liability Statement
Business Plan:
- if there is an existing loan, how much is outstanding
- what is your business plan while you own the property
- if Cap Raise, what are the funds being used for
- what is your exit strategy
The more information you supply, the quicker and better the response you will get from a Lender.
How quickly can I get a commercial bridge loan?
If you supply the information above in a timely manner, the Lender can make a quick credit decision. Once approved at credit, the Lender will instruct a valuation and legals.
Make sure that you pay the valuation fee asap and put your solicitor in funds and provide any supporting information they require in a timely manner.
What fees are involved?
In addition to the interest charges, when taking out a commercial mortgage, the following fees are or could be due:
Lender Arrangement Fee: This fee is usually 2% of the gross loan amount and is deducted from the loan at drawdown
Broker Fee (if used): Most Brokers charge a fee for arranging a mortgage, this could be a set fee or a percentage of the gross loan amount, it will be deducted from the loan at drawdown.
Valuation Fee: Fee payable to a chartered surveyor when they value the property for lending purposes and varies depends on the property value, type and location.
Legal Fees: Borrowers pay for both their own and the Lenders legal fees. Neither will start work until they have been put in funds and undertakings have been provided.
Lender Exit Fee: If the Loan is not redeemed on or before the loan maturity date, a loan exit fee may be due
Early Redemption Fee: Some loans (usually fixed rate loans) may incur Early Redemption Charges if the loan is redeemed during the period the fees are due.
Penalty Interest: Penalty Interest could be incurred if the loan is not redeemed within the agreed loan term.
Administration Fees: If during the term of the loan, interest payments are missed then the Lender will charge administration fees.