£1.2 Million 100% Bridging Loan to Secure Below-Market-Value Commercial Asset

A £1.2 million 100% bridging loan enabled an experienced investor to acquire a mixed-use commercial property without introducing new capital, by leveraging equity held within an existing portfolio.

The client identified an opportunity to purchase a semi-commercial building in a strong regional location at a discounted price of £1.2 million. The asset comprised ground-floor retail units with residential flats above. Due to the vendor’s requirement for a swift sale, completion was required within four weeks.

While the client had substantial equity across several unencumbered investment properties, available liquidity was tied up in ongoing refurbishment projects. Rather than liquidating assets or disrupting cash flow, the client sought a 100% bridging solution.

The Challenge

Mainstream lenders were unable to support the transaction within the required timeframe. Additionally, the property’s mixed-use configuration and partially vacant commercial units reduced its suitability for short-term mortgage financing.

The client required:

• 100% of the purchase price
• Fast completion within 28 days
• A structure that preserved working capital
• Flexibility to refinance once the asset was stabilised

The Solution

Global Bridging Finance structured a cross-collateralised facility, securing:

• A first charge over the subject property
• Additional security over an unencumbered residential investment asset

The combined security provided a blended loan-to-value of approximately 68% across both properties, allowing the lender to advance the full £1.2 million purchase price.

The loan was structured over a 12-month term, with interest retained to support cash flow. Funds were released in time to meet the contractual completion deadline.

The Exit Strategy

The client’s exit strategy involved:

• Letting the vacant commercial unit
• Completing light cosmetic improvements
• Refinancing onto a long-term commercial mortgage once the rental income was stabilised

Following completion and tenant placement, the client positioned the asset for refinance at an improved valuation.

The Outcome

The 100% bridging loan enabled the client to secure a below-market-value opportunity without deploying cash reserves. By strategically leveraging existing equity, the client expanded their portfolio while preserving liquidity for ongoing projects.

This case highlights how structured 100% bridging finance can unlock opportunity when speed, flexibility and asset strength align, particularly for experienced investors with strong equity positions.