A specialist lender has provided a short-term bridging facility of £774,000 for the acquisition of a mixed-use property on the East Yorkshire coast. The entire transaction was fully processed and completed in less than two months.
The purchase price of the property, which is used amongst other purposes for hospitality, amounted to £860,000. With the loan volume provided, a loan-to-value ratio of 90 percent of the purchase price was achieved, representing a notable financing ratio for the commercial hospitality sector.
Structuring the Bridging Finance
The credit facility was structured with a fixed term of 18 months. This timeframe provides the new owner with the necessary flexibility to consolidate the operational direction of the property and arrange follow-on financing over the medium term.
Given its location directly on the East Yorkshire coast, both tourism-related and location-specific factors of the regional market were decisive in the valuation. The deployment of funds in less than eight weeks highlights the importance of flexible specialist lenders in time-critical acquisitions.
Key Financing Details at a Glance
- —Financing volume: £774,000 bridging loan
- —Purchase price of the property: £860,000
- —Loan-to-value (LTV): 90 percent
- —Loan term: 18 months with a turnaround time of under two months
Bridging loans of this nature are primarily used in the UK property sector when transactions must be executed swiftly and standard banking procedures would require longer lead times. With the financing secured, the buyer can now proceed with operating the property as planned.
