I have found a prime London commercial site but the bank is too slow. Can you bridge?

Yes. The Hammersmith case here lent £3.31 million against a £5.97 million commercial site (55% loan-to-value) in 3 weeks, letting a developer secure the site immediately before slipping to another buyer. The developer then arranged long-term financing during the 12-month bridge term.

How long does an acquisition bridge for a London commercial site usually run?

6 to 12 months, as in this Hammersmith case. The term is sized to give the developer time to secure planning, attract a tenant, or organise long-term construction or investment finance, depending on the project plan.

How do I exit the bridge once long-term financing is in place?

You repay our loan from the long-term lender's drawdown, with no early-repayment penalties. We coordinate the redemption directly with your incoming lender to avoid double-interest periods. The Hammersmith borrower exited via long-term commercial financing once planning was secured.

Developer Uses Temporary Bridge to Acquire Prime Commercial Site in London

Beneficiary of a Trust requires a short-term loan

In the fast-paced world of property development, opportunities often arise that require swift action and flexible financing solutions. Such was the case for a developer in Hammersmith, London, who successfully acquired a prime commercial site using a bridge loan in the UK.

The Challenge

The developer identified a highly desirable commercial property in Hammersmith, London, with a market value of £5,970,000. Recognizing the immense potential for growth and profitability, the developer was determined to secure the site quickly before it slipped away. However, traditional mortgage lenders typically have lengthy approval processes that could jeopardize the opportunity.

The Solution: A Bridging Loan

To overcome the challenges associated with traditional financing options, the developer turned to Rikvin Capital, a leading provider of bridge loans in the UK, specializing in short-term funding solutions. After a thorough assessment of the developer’s requirements and the property’s value, we extended a commercial bridge loan of £3,311,105, representing a Loan-to-Value (LTV) ratio of 55%.

Benefits of Commercial Bridge Loans

Speedy Acquisition: By opting for a bridging loan, the developer expedited the acquisition process. Unlike traditional lenders, we were able to provide a swift approval and funding timeline, allowing the developer to secure the commercial site within a short period of three weeks.
Flexibility and Short-Term Nature: Commercial bridge loans are designed to bridge the gap between immediate financing needs and longer-term funding options. In this case, the developer required funding for 12 months. The short-term nature of the loan provided the developer with the flexibility needed to execute their business strategy effectively.
Payment Schedule: We provide the option of making monthly or quarterly payments, along with a convenient roll-up payment plan. Our client, who had a steady cash flow, opted for the monthly payment schedule to ensure that the repayment instalments were easily manageable. This allowed the developer to focus on property development and utilize the anticipated cash flow from the project to repay the loan conveniently.

In the competitive property market of Hammersmith, London, timing is crucial, and access to quick and flexible financing can make all the difference.

If you find yourself in a similar situation requiring immediate financing for a commercial property acquisition in the UK, consider the advantages that bridging loans can offer. Companies like Rikvin Capital specialize in providing tailored funding solutions, enabling developers and property investors to seize valuable opportunities while maximizing their returns. Don’t let time or traditional financing limitations hinder your ambitions; explore the possibilities of bridging loans in the UK today.