The Client
This client was already a property investor and knew exactly what they were looking for – a building with potential, not a “perfect” finished asset.
The Opportunity
They came across a commercial property priced at £150,000 that immediately caught their attention. The numbers made sense, the location worked, and importantly, the upper floors could be converted into residential accommodation under permitted development.
It was the kind of opportunity that doesn’t hang around for long.
The Problem
On paper, the client was in a strong position. They owned another property outright and had no issues with credit or experience.
The problem was simple – there was no spare cash available.
Everything they owned was tied up in property, and this deal required:
- A deposit
- Money for refurbishment works (around £25,000)
- A lender willing to look beyond a standard commercial mortgage
High-street lenders weren’t interested. No deposit, a commercial building, and works required? It didn’t fit their criteria.
Without a different approach, the client was going to lose the deal – despite having plenty of equity behind them.
How we looked at it differently
Rather than focusing on what the client didn’t have (cash), we looked at what they did have.
They owned another property outright, valued at £100,000, which wasn’t being used at all. That equity was just sitting there.
Instead of forcing the new purchase to stand alone, we structured the deal so both properties worked together.
This is where a cross-charge bridging loan made sense.
The Solution
By using both properties as security, we were able to arrange funding at 75% loan-to-value across the two assets combined, through a specialist lender that understands commercial property deals.
The final funding looked like this:
- £75,000 released against the existing unencumbered property
- £112,500 provided toward the purchase of the commercial building
That gave the client enough to cover:
- The purchase deposit
- £37,500 for conversion and refurbishment works
- Legal fees, lender costs, and interest
And crucially — this was all done under one loan, with one lender, and one set of legal work. No unnecessary complexity. No duplication of costs.
The Benefits
The client completed the purchase without putting any personal cash into the deal.
They were able to start refurbishment work immediately, knowing the funding was already in place rather than being drip-fed or delayed.
Just as important, the lender agreed a clear exit plan from the outset. Once the works are finished, the client can refinance onto two separate long-term mortgages, one for each property, with lower valuation and arrangement fees than starting from scratch.
That clarity removed a lot of stress from the process.
Why this worked
This deal wasn’t about finding “more money” – it was about using what the client already had in the right way.
By structuring the finance around the bigger picture, the client was able to:
- Secure a commercial property they would otherwise have missed
- Avoid injecting cash or draining reserves
- Use existing equity efficiently
- Keep a clean, realistic route onto long-term finance
The bigger takeaway
A lot of property investors think they’re stuck because they don’t have a deposit sitting in the bank.
In reality, many are equity-rich without realising how powerful that can be.
With the right advice and the right structure, deals that look impossible on the surface suddenly become very achievable.
If you are seeking a whole of market Bridging Loan Broker and Commercial Mortgage Broker contact us today to speak directly with one of our CeMAP certified Mortgage Advisors. Call us today on 03303 112 646. Alternatively, please complete this short online form one of our Advisors will call you right back.