Bridging Finance Loan for Business Owner Leasing Commercial Premises


I recently arranged a bridging finance loan for a client in need of a quick result. My client in this instance was a self-employed business owner who ran a convenience store and a takeaway shop in the units beneath three uninhabited flats in north-west London. He was approached by a major supermarket chain which was interested in taking over the bottom, commercial units.

A deal was signed giving the supermarket a twenty-year lease of the units, with the supermarket also undertaking to carry out its own refurbishment work for the retail shell they needed. To contribute to the building works my client was required to hand over £240,000 seven days after giving vacant possession.

He also had an £80,000 mortgage with a high street bank which needed be cleared before the deal could go ahead. Finally, the client wanted £140,000 with which to carry out his own renovations on the flats above.

The details were complicated, and the client had to wait for a finalised contract before approaching a lender. He was therefore left with very little time to find the money, and came to us needing a swift solution to a complex problem.

I had to find a lender not only able to operate within such a tight timeframe, but who was also prepared to lend against a mixed-use commercial property. Because of the timescale, a bridging finance loan was the best option.

The property was valued at £1.2m. I found a highly specialised lender – one which Enness had never used before – who was happy to offer a net loan of £460,000 on a nine-month term, at a rate of 1.2% per month. There was a 2% arrangement fee.


In the pipeline are longer term solutions to replace bridging. Once refurbishments are finished the property will be worth between £2.5m and £3m, at which point we will set up a commercial mortgage.

My client was delighted with the speed of the arrangement and happy that he could fulfil his side of the contract in time.