£5.9M 2nd & 3rd Charge Bridging Loan Supports Commercial Acquisition

• Client: Experienced property investor
• Challenge: Raise acquisition capital without disrupting existing first-charge finance
• Loan Amount: £5.9M

The Challenge

The client identified a substantial commercial property being offered at a price that presented an opportunity to expand their investment portfolio.

Most of the client's existing properties were already financed, with established first-charge facilities in place. Refinancing those arrangements would have required restructuring the wider portfolio and could have delayed the acquisition.

The client therefore explored whether additional borrowing could be secured against existing assets while leaving the senior facilities in place.

The Bridging Solution

Global Bridging Finance arranged a £5.9M 2nd and 3rd charge bridging facility across selected properties within the client's portfolio.

The lender assessed the existing first and second charges, available equity, property values and the overall security position. The lender also considered the client's investment experience and proposed exit from the new commercial acquisition.

The structure provided the required capital without requiring the client to refinance the existing senior borrowing across the portfolio.

The Exit Strategy

The primary exit was a long-term commercial investment refinance against the newly acquired property once the acquisition was complete and the asset had stabilised.

A secondary exit involved the potential sale of another investment property if required.

The Outcome

The 2nd and 3rd charge bridging loan gave the client access to additional capital while allowing existing senior finance to remain in place.

The case shows how subsequent-charge bridging finance can unlock available equity in an established property portfolio when refinancing existing facilities is not the preferred route.