TAB has completed a £2,804,750 commercial bridging loan secured against two London commercial properties, advancing funds 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 £3.59m in net advances across two facilities. Proceeds will allow the borrower to inject capital into his wholesale trading business, repay existing business debt and fund further property portfolio expansion.
The two security assets differ considerably in character. The first is an industrial unit on an established estate off the A13, occupied in full by the borrower's wholesale trading operation and used for warehouse storage. The second is a three-storey commercial building on the west side of Lewisham High Street, comprising retail space on the ground floor with commercial ancillary storage above, accessed from the rear via an external spiral staircase.
The case presented several complications. A charge registered against one of the titles in 2024 arose from a historic dispute over rent on a council-owned leased property during the pandemic. The borrower confirmed the matter had subsequently proceeded to court and been settled in full, allowing the transaction to proceed.
The proposed exit relies on rental income from the secured properties. Market rent across both assets is estimated at £330,000 per annum. Applying a 125% rental cover calculation produces annual debt service capacity of £264,000 and, at an assumed 9% rate, a maximum loan value of approximately £2.93m, sufficient headroom to redeem the £2.8m bridge, with passing rent expected to match the market rent. Underwriting was handled by Barry Richardson, underwriting manager at TAB.
"This case demonstrates the growing demand for commercial bridges that can be delivered with speed and certainty," said Gary Melville, business development specialist at TAB (pictured). "I am pleased we have been able to bring some momentum to lending here."
The deal was introduced by Clifton Personal Finance. Jonathan Moffat, head of corporate finance at Clifton Personal Finance, said: "TAB were excellent in supporting a complex case and helped drive it through to completion. "Where others stepped back, TAB took a common-sense approach and delivered."
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