Case Study: Commercial Mortgages - 75% LTV Delivered on Commercial-to-Residential Asset Refinance

Overview

A borrower needed a £465,000 commercial bridging loan to refinance after their previous lender withdrew from the deal shortly before completion. The property was a former office building in Essex, purchased for £550,000 and planned for conversion into residential flats (with a projected GDV of £1.14m).

The priority was speed and continuity—helping to avoid avoidable costs and delays at a point where the borrower’s existing lender position was time-sensitive.

Deal snapshot

• Property location: Essex
• Loan amount: £465,000
• LTV: 75%
• Term: 6 months
• Purpose: Commercial-to-residential conversion refinance (bridging)

The challenge

1) Previous lender pulled out at a critical stage

The borrower’s original funding route was disrupted when the initial lender withdrew just before completion. With their current lender calling their loan in, the borrower needed a replacement lender that could move quickly and keep the project on track.

2) Re-addressing an existing valuation to avoid delay

A fresh valuation would have introduced both additional cost and time—two risks the borrower could not afford. The approach focused on using the existing valuation evidence where possible, while still meeting lender requirements.

3) Delivering 75% LTV on a commercial asset

Commercial lending can be more restrictive than residential, particularly where the asset is not income-producing in its current form. In this case, the borrower needed a lender comfortable with the commercial-to-residential conversion proposition and the associated valuation considerations.

The approach

To address the borrower’s situation, the facility was structured around three practical priorities:

• Re-addressing the existing valuation report to reduce turnaround time and avoid the need for a completely new valuation process.
• Using the previous lender’s legal setup to streamline legal progression and reduce the risk of avoidable delays.
• Securing a 75% LTV bridging facility aligned to the project’s conversion plans and the borrower’s refinancing timetable.

The outcome

By re-addressing the valuation and coordinating the legal process efficiently, the borrower achieved a £465,000 loan at 75% LTV on a 6-month term, delivered in only 7 days.

This case demonstrates how commercial bridging refinances can be managed when timelines tighten—particularly where valuation evidence and legal momentum need to be protected to keep a conversion project moving.