Commercial Bridging Loan for Vacant Property Refinance

Refinancing a vacant commercial property can be challenging, particularly when there is no rental income and the site’s future value depends on planning permission.

In this case study, Positive Commercial Finance arranged a Commercial Bridging Loan for Vacant Property Refinance, enabling our client to repay existing borrowing while allowing time for a revised residential planning application to progress.

The Opportunity

Our clients owned a former business park in the Midlands that had previously been used for commercial purposes.

The site was no longer occupied by tenants and the existing buildings were suitable only for storage. However, the property offered significant redevelopment potential.

A detailed planning application for residential development had already been submitted. Since then, a more suitable scheme had been identified, and the clients wanted the flexibility to amend the application before moving forward.

The Challenge

The existing debt needed to be refinanced while planning permission was being finalised.

Several factors made the transaction more complex:

• The property was vacant and produced no rental income.
• The site’s value depended largely on future planning consent.
• The ownership structure was more complex than a standard borrowing arrangement.
• The lender needed to support a short-term holding strategy while planning progressed.

Finding a lender willing to consider all of these factors required a flexible, commercial approach.

Our Solution

We approached specialist lenders experienced in commercial bridging finance for vacant properties and identified one that understood both the planning strategy and the ownership structure.

The chosen lender was comfortable providing a short-term bridging facility that repaid the existing loan while giving the client sufficient time to progress the revised planning application.

Following receipt of the valuation report, the legal process moved quickly and the refinance completed without unnecessary delay.

Deal Structure

• Interest Rate: 0.95% per month
• Arrangement Fee: 2%
• Exit Fees: None

The Result

The refinance provided the client with a flexible holding facility while the planning process continued.

With the pressure of the existing debt removed, the client can now decide whether to sell the site following planning approval or proceed with the residential development themselves.

This case demonstrates how specialist commercial bridging finance can support vacant commercial properties where future value depends on planning gain rather than existing income.