Commercial bridging in Birmingham: when it is the right answer, and when it absolutely is not
Commercial bridging at 0.75 to 1.10% per month is meaningfully more expensive than term commercial mortgage debt at 6.5 to 8.5% pa, but for the right case it is the right answer. Vacant possession purchase below market value, change-of-use light works, sub-12-month exit, chain-break refinancing, all real bridging use cases we see in the Birmingham market every month. The wrong cases, using bridging where a clean commercial investment mortgage would fund, or using bridging because the borrower\'s accounts are not yet ready for term, cost real money and frequently end badly. This piece walks through the case-selection framework, the bridge-to-let exit mechanic, and the active Birmingham bridging desks at LendInvest, Shawbrook, Together and Hampshire Trust Bank. Three worked Birmingham examples: a vacant Jewellery Quarter B18 parade purchase, a Digbeth B5 change-of-use unit, and a chain-break Harborne B17 pub.
This piece is in preparation.
The outline below is the planned structure for the full piece. Send a topic suggestion or a follow-up question to enquiries@commercialmortgagesbirmingham.co.uk and we will work it in.
Coming soon, practical guide to commercial bridging decisions for Birmingham deals.
Outline
- What commercial bridging actually costs: 0.75 to 1.10% pm
- The right cases: VP purchase, light works, chain break
- The wrong cases: 'because we could not get a term loan'
- The bridge-to-let mechanic and the agreed exit
- Bridge-to-sale: when it works
- Active Birmingham bridging desks
- Worked example 1: vacant Jewellery Quarter B18 parade purchase
- Worked example 2: change-of-use Digbeth B5 unit
- Worked example 3: chain-break Harborne B17 pub
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