TAB has completed a £2.8 million commercial bridging loan secured against two London commercial properties on a first-charge basis at 65% loan-to-value over a 12-month term. The loan forms part of a wider funding round totalling approximately £3.59 million in net advances across two facilities.
The borrower will use proceeds to inject capital into a wholesale trading business, repay existing business debt and fund further property portfolio expansion. The two security assets comprise an industrial unit on an established estate off the A13, occupied by the borrower’s wholesale trading operation for warehouse storage, and a three-storey commercial building on Lewisham High Street with ground-floor retail space and commercial storage above.
Underwriting challenges
The transaction faced complications including a charge registered against one title in 2024, arising from a historic dispute over rent on a council-owned leased property during the pandemic. The borrower confirmed the matter had been settled in full through court proceedings, allowing the transaction to proceed.
The commercial bridging sector has seen increased activity as industry voices call for property policy stability amid changing market conditions. The proposed exit strategy relies on rental income from the secured properties, with market rent across both assets estimated at £330,000 per annum.
Debt service calculations
Applying a 125% rental cover calculation produces annual debt service capacity of £264,000. At an assumed 9% rate, this generates a maximum loan value of approximately £2.93 million, providing headroom to redeem the £2.8 million bridge, with passing rent expected to match market rent.
Barry Richardson, underwriting manager at TAB, handled the underwriting. Gary Melville, business development specialist at TAB, said the case demonstrates growing demand for commercial bridges that can be delivered with speed and certainty. The deal was introduced by Clifton Personal Finance.
Jonathan Moffat, head of corporate finance at Clifton Personal Finance, said TAB supported a complex case and helped drive it through to completion, taking what he described as a common-sense approach where others stepped back.
The transaction reflects broader trends in commercial property financing, as lenders adapt their criteria to accommodate complex cases in the current market environment. Commercial bridging facilities continue to serve as a financing option for business owners seeking to leverage existing property assets for operational expansion.
