TAB has completed a £2.8m bridging loan secured against two commercial warehouses in London, releasing capital for business investment, debt repayment and property portfolio expansion.
The commercial mortgage lender and bridging specialist provided the £2,804,750 first-charge loan through a 12-month facility at 65% loan-to-value.
One of the properties is an industrial unit on an established estate near the A13. It provides warehouse accommodation within the B8 Use Class and is fully occupied by the borrower’s wholesale trading business.
The second is a three-storey commercial building on the west side of Lewisham High Street. Dating from around 1950, it has ground-floor retail space and ancillary commercial storage on the upper floors, accessed from the rear by an external spiral staircase.
The transaction forms part of a wider funding round, with net advances across two loans totalling approximately £3.59m.
The borrower is releasing equity from investment properties to inject capital into the trading business, repay existing business debt and fund the expansion of his property portfolio.
The case includes complications concerning the borrower’s existing property interests, including a charge registered against one title in 2024. This relates to a historic dispute over rent on a council-owned leasehold property during the pandemic.
The borrower says the matter subsequently went to court and the disputed sum was settled in full.
Gary Melville (pictured), business development specialist at TAB, says: “This case demonstrates the growing demand for commercial bridges that can be delivered with speed and certainty. I am pleased we have been able to bring some momentum to lending here.”
The proposed exit relies on rental income from the secured properties. Their combined market rent is estimated at £330,000 a year.
A 125% rental-cover calculation gives an annual debt-service capacity of £264,000. At an assumed interest rate of 9%, this produces a maximum loan value of approximately £2.93m, which would be sufficient to repay the £2.80m bridging facility.
The market rent is expected to be matched by the passing rent, allowing the borrower time to deploy the released funds and arrange longer-term finance.
TAB’s underwriting was carried out by underwriting manager Barry Richardson.
Jonathan Moffat, head of corporate finance at Clifton Personal Finance, says: “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.”
