Commercial bridging in Cardiff: 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 Cardiff 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 Cardiff bridging desks at LendInvest, Shawbrook, Together and Hampshire Trust Bank. Three worked Cardiff examples: a vacant Tremorfa CF24 warehouse purchase, a Whitchurch Road CF14 A1-to-A3 change-of-use unit, and a chain-break Pontcanna Street CF11 restaurant.
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@commercialmortgagescardiff.co.uk and we will work it in.
Coming soon, practical guide to commercial bridging decisions for Cardiff 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 Cardiff bridging desks
- Worked example 1: vacant Tremorfa CF24 warehouse purchase
- Worked example 2: change-of-use Whitchurch Road CF14 A1 to A3 unit under Welsh Use Classes
- Worked example 3: chain-break Pontcanna Street CF11 restaurant
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