A 2024 charge tied to a pandemic-era rent dispute featured in the latest deal
TAB has completed a £2.8m bridging loan secured against two commercial warehouses in London, working through a historic rent dispute tied to one of the properties before completion.
The commercial lender and bridging specialist confirmed the £2,804,750 facility was secured on a first-charge basis, advanced over 12 months at 65% loan-to-value. The loan formed part of a wider funding round, with total net advances across two facilities reaching approximately £3.59m.
The borrower, who runs a wholesale trading business, sought to release equity from investment properties to inject capital into the business, repay existing business debt and expand his property portfolio.
Historic rent charge complicated the case
The transaction involved several complications tied to the borrower's existing property interests, including a 2024 charge against one of the titles. The charge stemmed from a historic dispute over rent on a council-owned leased property during the pandemic. The borrower advised that the matter had since proceeded to court and that the disputed amount was settled in full.
The two secured properties themselves span different commercial uses. The first is an industrial unit on an established estate immediately off the A13, falling within the B8 use class. It is fully occupied by the borrower's wholesale trading business, which uses the premises for warehouse storage.
The second property sits on the west side of Lewisham High Street and comprises a three-storey commercial building dating to around 1950. The ground floor houses retail space, while the upper floors provide commercial ancillary storage, accessed via an external spiral staircase at the rear.
"This case demonstrates the growing demand for commercial bridges that can be delivered with speed and certainty,” said Gary Melville (pictured top), business development specialist at TAB. “I am pleased we have been able to bring some momentum to lending here."
Jonathan Moffat, head of corporate finance at Clifton Personal Finance, said: "TAB were excellent in supporting a complex case and helped drive it through to completion. Where others stepped back, TAB took a common-sense approach and delivered."
Exit rests on rental income
The proposed exit is based on rental income generated by the two secured properties, with total market rent estimated at £330,000 per annum. Applying a 125% rental cover calculation gives an annual debt service capacity of £264,000. At an assumed 9% rate, this produces a maximum loan value of approximately £2.93m, sufficient to redeem the £2.80m bridging facility. Market rent is expected to be matched by passing rent.
TAB's underwriting on the case was carried out by underwriting manager Barry Richardson.
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