Can I Get A Bridging Loan For A Commercial Property? | Bridging ...

Yes, bridging loans are available for commercial properties, but the terms and conditions vary greatly. In fact some lenders that provide residential bridging loans do not provide loan for commercial properties. Others that do provide commercial bridging loans will only lend 50% LTV (loan to value) or less of the value of the property, or the purchase price whichever is the lower.

Why is there such a difference in terms and conditions? As with all bridging loans the rates and terms depend on the risk of the transaction. The more unique the property, the more the perceived risk of the transaction to the lender. Hence the rates will be higher and the LTV lower. However the type of property will also affect the terms and conditions of the loan, the more desirable the property the better the terms and conditions.

Also the use of the property will have an effect on the terms and conditions of the bridging loan. Public houses and hotels are not particularly popular in the current economic climate. Semi commercial properties in good locations can usually provide good security for bridging loans with the highest LTV?s available for commercial properties. Properties that are purely commercial can be hard to raise loans on, especially if they are empty or do not have tenants lined up for occupancy. Some commercial properties are virtually impossible to raise loans against such as churches or even ex churches, venues for adult entertainment, petrol stations and operating nursing homes.

As it can be seen getting a bridging loan offer on a commercial property is no easy matter and can prove a challenge to even the most experienced property professional. Fortunately for those with less experience commercial bridging loans can be sourced by using a specialist bridging loan broker. Here at Sunrise Commercial Finance our Senior Loan Consultants have years of experience arranging bridging loans for the most challenging cases.

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Tags: bridging loan, commercial property, higher, rates, risk, terms and conditions

This entry was posted on Wednesday, March 7th, 2012 at 12:30 pm and is filed under Bridging Loans, Help & Guides. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Source: http://www.sunrisecommercial.co.uk/blog/2012/03/07/bridging-loan-commercial-property/

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