Bridging loans for commercial property

Bridging loans for commercial property are similar to those for residential; in that borrowers need to act fast, either to lock in a great discount or they wish to purchase before another contingent property deal completes which in turn enables them to repay the bridging loan.

Commercial loans are different because they can be more complex. Not only is there a large variation on the type of commercial properties that exist and their uses but also the different ways of occupying a property i.e. with multiple tenants and agreements, all with different financial strength.

Another important issue to consider when dealing with commercial property, is the limited market for resale when compared with residential properties. This also increases the risk factor from a lenders perspective. This often produces a lower loan to value available to help offset the risk being undertaken.