Commercial bridging: shops, offices, industrial, mixed use.
Short-term finance on commercial and semi-commercial property in England: buying vacant buildings, refinancing out of a bank, funding a change of use, or holding a tenanted asset while a term loan is arranged.
What counts as commercial
Anything that is not purely residential: shops with flats above (semi-commercial or mixed use), offices, retail, industrial units, warehouses, pubs, restaurants, care homes, hotels, places of worship, petrol stations. Lenders treat semi-commercial more generously than pure commercial, because the residential element gives a clearer exit.
Typical terms
| Property | Max LTV | Rate per month |
|---|---|---|
| Semi-commercial (residential over 40% of value) | 70% to 75% | 0.7% to 1% |
| Commercial, tenanted, good covenant | 65% to 70% | 0.75% to 1% |
| Commercial, vacant | 60% to 65% | 0.85% to 1.2% |
| Specialist (pubs, hotels, care, leisure) | 50% to 65% | 0.9% to 1.25% |
Loans from £150,000 to £25m+, terms of 6 to 24 months, interest retained or serviced from rent.
Common commercial deals
- Change of use to residential. Office or retail to flats under permitted development or full planning. Bridge funds the purchase; a heavy refurb or development facility funds the works; exit to sale or a multi-unit BTL mortgage.
- Buying vacant, letting, refinancing. Vacant commercial is hard to mortgage. Bridge the purchase, secure a tenant, refinance on to a commercial mortgage at investment value.
- Refinancing away from a bank. The bank wants out, the property is fine. A bridge repays the bank and gives 12 to 18 months to arrange a replacement term loan or sell.
- Title splits. Buying a building with shop and flats on one title, splitting the titles, selling or refinancing the parts separately.
- Trading business premises. Buying the freehold of the premises your business trades from, ahead of a commercial mortgage that takes months.
What lenders look at
Valuation on a vacant-possession and an investment basis; the lease, tenant covenant and break clauses if let; the planning position; environmental issues on industrial sites; and the exit. Commercial valuations take longer and cost more than residential. Allow two to three weeks for the valuation alone on anything unusual.
About the numbers on this page. Rates, fees and loan-to-values are typical market ranges for unregulated bridging in England, given so you can size a deal. They are not an offer. Your terms depend on the property, the exit, the lender and you.
Questions we get asked
Can I bridge a vacant commercial building?
Yes, at a lower LTV (typically 60% to 65%) and a higher rate than a tenanted one. Lenders want to see the plan: a tenant lined up, a change of use, or a sale.
Do lenders bridge pubs and hotels?
Some do, at conservative LTVs, and usually where the exit is a change of use to residential or a sale to an operator. Trading-business bridges on going concerns are a smaller market.
Is a shop with a flat above commercial or residential?
Semi-commercial. If the residential part is more than about 40% of the value, most lenders treat it close to residential, with LTVs up to 75%.
How long does a commercial bridge take?
Three to five weeks is realistic, mostly because of the valuation and the commercial legal work. Faster is possible on straightforward semi-commercial property with a recent valuation.
Tell us the deal.
A few numbers and a postcode is enough for a first view. Indicative terms cost nothing and commit you to nothing.