Bridging loans for commercial property

If you need to relocate your business quickly and are in need of fast property finance then the most appropriate finance solution is to apply for a commercial property loan. Commercial bridge loans are designed to help businesses of any size bridge the gap between the acquisition of a new property with the sale of an existing premises. There are many commercial bridging finance loan brokers currently operating in the UK and the competition between them has become considerably fierce over the last few years. This means that finding the best short-term commercial property bridging finance package for an existing business is much easier than one would typically imagine.

There are two main types of bridging loan: these are termed as open and closed bridge. The closed bridge is available to those who have already made an exchange on their existing property. This is because very few offers fall through after the exchange has been carried out. An open bridging loan is given to those who have found their ideal property but have yet to put their current home on the market. More background documentation will be needed for this type of loan and you will have to prove that you have a lot of equity in your property before you are given an offer.

Example:

The company has decided to relocate to a different area of town where you feel offers a better position for the firm as this is in a more viewable part of the town. The office buildings you currently own are up for sale or are being rented out and a commercial mortgage is taking to long to come through as there are other competitors viewing the property who will shortly make an offer in cash. A bridging loan can be offered quickly allowing you to exchange contracts as a matter of urgency on the property and therefore securing your purchase.