Commercial Bridging Loan Cambridge
Acquire a vacant or value-add commercial property on a 12 to 24 month bridge, refurbish or re-let, then term out onto a long-term commercial investment mortgage. £500K to £5M typical. Bridge interest rate 0.75 to 1.10% pm; term-out 6.5 to 8.5% pa once stabilised. Repayment serviced monthly or rolled-up. Limited company SPV structures supported.
Bridge term
12 to 24 months
Bridge rate
0.75 to 1.10% pm
LTV (bridge)
Up to 70%
Term-out
6.5 to 8.5% pa
What is bridge-to-let and when does it make sense?
Commercial bridge-to-let is a two-stage facility. The first stage, the bridge, funds acquisition of a commercial property that is not immediately fundable on a long-term mortgage: vacant, partly tenanted, mid-refurbishment, or with an unsigned lease at point of purchase. The second stage, the term-out, refinances the bridge onto a standard commercial investment mortgage once the asset is income-producing and the ICR test passes.
Bridges typically run 12 to 24 months, with interest serviced monthly or rolled-up into the loan balance (useful where the asset is not income-producing during the bridge period). Bridge LTV up to 70% of current value, sometimes higher with refurb-funded value where lenders consider GDV (gross development value). Bridge interest rate currently 0.75 to 1.10% pm, equivalent to 8.5 to 11.0% pa, meaningfully more expensive than long-term debt, but the right answer for a 12-month value-add play where no term lender will engage on the day-one position.
The agreed exit onto term debt is the underwriting comfort. Specialist lenders like LendInvest and Shawbrook either provide both legs (bridge then term with the same lender, on a pre-agreed product transfer) or partner with a sister term lender. We model the all-in cost across the bridge period plus term-out so you see the true total cost of the strategy before drawdown.
Most commercial bridge-to-let is taken out by a limited company SPV with director personal guarantee, and is unregulated commercial lending. The exception: where the bridge is secured against a property with a residential element that the borrower will personally occupy, the deal can fall under FCA-regulated bridging rules and routes to a regulated bridging lender. Stamp duty land tax applies on the day-one purchase at standard commercial rates; it is paid by the buyer at completion of the bridge, not at term-out (because term-out is a refinance, not a fresh purchase). That timing matters for cash-flow planning on the deal. Indicative case seed: a converted CBC-fringe office floorplate bought as development exit at £1.8M on a 15-month bridge at 0.95% pm, refurbished and re-let to an SME life sciences tenant, termed out at 65% LTV at around 7.0% pa.
From auction or off-market acquisition to stabilised investment
1. Strategy review
We review the asset, the refurb or re-letting plan, the target term-out exit. All-in cost modelled: bridge interest, bridge fees, term-out arrangement, valuation set.
2. Bridge terms in 48 hours
Bridge LTV, interest rate, term, fees from three specialist desks. Plus indicative term-out terms post-stabilisation.
3. Bridge completion
Bridge can complete in 2 to 3 weeks for clean cases. Asset acquired. SDLT paid at completion.
4. Refurb or re-let phase
Borrower executes the plan over 6 to 18 months. Property stabilises into income-producing asset with leases or AST tenancies in place.
5. Term-out refinancing
Once let with valid commercial leases or ASTs, refinance onto term mortgage at standard 6.5 to 8.5% pa pricing. ICR test passes.
6. Bridge redeemed
Bridge redeemed from term-out drawdown. Exit complete. Borrower now on long-term repayment schedule.
Deal types where short-term commercial debt is the right tool
- Development exit on CBC-fringe converted offices being re-let to life sciences and professional services tenants
- Central Cambridge HMO conversion bridges where consent supports ground-floor commercial and multiple upper-floor lets
- Investors buying vacant central Cambridge office floorplates for refurbishment and re-letting around Sidney Street and Hills Road
- Mill Road and Romsey semi-commercial conversion deals (Class E to retail-plus-residential)
- Cherry Hinton and Chesterton industrial unit acquisitions from receivers
- Trading-business operator buyouts where the new operator needs 12 months of accounts before high-street refinancing
- Auction-bought commercial assets (typical 28-day completion timeframe rules out term mortgage processing)
- Change-of-use conversion deals through Greater Cambridge Shared Planning (B8 to Class E, B-class to mixed commercial)
Active Cambridge bridge-to-term value-add territory
LendInvest and Shawbrook are the most active commercial bridging desks for Cambridge £500K to £5M deals; InterBay Commercial takes selected cases on the larger end. Particular value-add territories in 2026: CBC-fringe converted office floorplates being re-let to life sciences and professional services tenants as development exits; central Cambridge HMO conversion bridges where Greater Cambridge Shared Planning has supported ground-floor commercial plus upper-floor residential conversion; vacant Sidney Street, Hills Road and St Andrew's Street office floorplates being refurbished for re-letting; Mill Road and Romsey semi-commercial conversions; Cherry Hinton and Chesterton industrial units bought from receivers; and the meaningful change-of-use pipeline running through the Greater Cambridge planning authority (B8 industrial to mixed commercial, Class E to leisure, office to flats). Auction-bought assets at regional rooms are a regular driver of bridge enquiries: the 28-day completion clock simply cannot be met by term-mortgage process.
Commercial Bridge-to-Let FAQs
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Exploring Commercial Bridge-to-Let for your Cambridge scheme?
Free-of-charge scheme assessment. Indicative terms within 48 hours.