Commercial Bridging Loan to Purchase Hotel

Background 

A client who had been running hotels for many years wanted to take the leap to buy her own premises. She found a beautiful property valued at £1.2m; a pub with 7 lettable rooms as well as two lettable units at the back that needed a refurb. 

Challenge 

The purchase had an 8-week deadline, which is incredibly tight for a commercial purchase. The client had no previous commercial investment experience or property development experience, and the premises, including the lettable units, needed some serious refurb. 

Solution 

The lender to agreed to a desktop valuation to speed up the process. We secured an 18-month term to give her enough time to complete the work and refinance. And to make the lenders comfortable with the loan size,  we secured a second charge on her residential property. 

Outcome 

Secured a commercial bridging loan with MS Lending at 1.1%. The client is going to live in the owner’s section, and refinance her residential onto a buy-to-let mortgage to repay the loan, as well as refinancing the hotel onto a commercial term mortgage once the work is complete. A fantastic outcome for a wonderful client who has made her lifelong dream come true!