Lender TAB has finalised two linked bridging facilities worth £4.5 million, aimed at refinancing existing debt on commercial properties located in Poole and Bournemouth. The completion of these transactions occurred within seven days of the initial enquiry, despite the lender describing the legal and beneficial ownership structure as complex.
The first facility provides £3,477,000 for a commercial property in Poole, valued at £5,225,000, with an initial loan-to-value (LTV) of 66.5%. The second facility offers £975,000 for a Bournemouth commercial property, valued at £1.5 million, with an initial LTV of 65%. Combined, the facilities have an initial LTV of 66.2% against a total property valuation of £6.725 million.
Both loans are set for a 24-month term, with interest retained for the first month and serviced thereafter. The properties require different asset management strategies; the Poole property is an office building with vacant upper floors, while the Bournemouth property has a large vacant ground floor space.
The primary exit strategy for the borrower is to sell the properties after reletting, though residential conversion under permitted development rights is an alternative. The facilities also include mandatory quarterly capital repayments, reducing the combined borrowing by £150,000 every three months.