Bridging finance for commercial properties

This type of loan is on the increase as more and more people seek a quick solution to funding a commercial property purchase. The last 5 years has seen a rise in the time regular lenders and high street banks are taking to complete deals thus buyers are becoming frustrated.

Commercial bridging is a short term loan usually for 12 months or less, which can be used against the purchase of a commercial property. The loan is normally secured against the property you are buying but other options do exist.

Examples of commercial properties that qualify

-        Shops with a flat above

-        Restaurants

-        Retirement homes

-        Nursing homes

-        Guest houses & Bed and breakfast

-        Office buildings

-        Buy to let properties

-        Commercial industrial units

-        Hotels

Types of Bridging Loans available

Closed

This is a loan which has a fixed repayment date, normally recommended if you have already exchanged contracts and you are waiting for a sale to complete.

Open

With this loan there is no fixed date of repayment the lender will usually expect repayment within one year but this does vary.

The lender will want to see a clear repayment structure in place.