"By using the initial bridge, the borrower was able to secure the time needed to increase the property's occupancy and cash flow"
- Jason Shead - TAB
The property was a vacant office building initially refinanced through TAB’s bridging loan to repay an existing lender. The building has a total floor space of 1,255 sqm and comprises two detached buildings which have been converted from industrial use to serviced offices.
After achieving significant occupancy levels and generating sufficient rental income, the borrower secured a 10-year commercial mortgage, with an LTV of 65% under TAB’s mortgage solutions.
TAB provided a bridge to allow the borrower to refinance its existing lender and complete refurbishment works and achieve required occupancy levels. Throughout the loan, the borrower successfully increased occupancy to 30-40%, with the property now generating a passing rent of £159,869 per annum.
Jason Shead, Chief Risk Officer at TAB, advised: “This case illustrates how our TAB Series product can help borrowers manage the full life cycle of their projects. By using the initial bridge, the borrower was able to secure the time needed to increase the property's occupancy and cash flow. The client has since met all income and affordability requirements, enabling them to move onto our TAB Mortgage for long-term security.”
The property has a market value of £1,775,000, TAB also holds a debenture over the associated management company, ensuring comprehensive security for the loan.
Mo Chishti, Managing Director of Total Money Management, who has worked with TAB commented in support of this: “I’ve found TAB’s products to be a game changer in an increasingly rigid market. The normal ports of call often can’t accommodate projects that fall outside their lending criteria, but TAB have managed to fill the gap and have been adaptable to case by case needs.”
