Large bridging loans for commercial property:multi-million and syndicated facilities
Large bridging loans are short-term facilities of several million pounds and above, secured on substantial commercial property or portfolios, and provided by lenders, funds or groups of lenders able to take on that size of exposure. At this level the process changes: fewer lenders can act alone, due diligence is deeper, and terms are negotiated rather than taken off a product sheet.
This page explains how large commercial bridging works, who lends, what lenders investigate and how to put a big case together so it completes on time.
Key takeaways
Large bridging loans of several million and above are written by larger specialist lenders, funds, banks and syndicates.
Club deals, syndication and senior plus mezzanine structures can fund loans beyond one lender's appetite.
Expect enhanced KYC, source of wealth checks, a report on title and larger valuation firms.
Size brings room to negotiate release prices, extension options, interest structure and guarantees.
Lenders scrutinise the exit hardest on large loans, so evidence it before you apply.
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What counts as a large commercial bridging loan?
There is no formal threshold, but once a loan reaches several million pounds the pool of lenders able to write it alone narrows and the process starts to look more like institutional property lending. Typical borrowers and assets include:
Investors and funds buying office blocks, multi-let industrial estates or retail parks.
Portfolio owners refinancing or restructuring several buildings at once.
Developers buying sites or buildings with planning ahead of a development facility.
Trading businesses buying or raising capital against hotels, care homes or large owner-occupied premises.
The principles are the same as any bridge: security, LTV and exit. The difference is the depth of the work and the room to negotiate.
How big a bridging loan can you get?
There is no fixed market maximum. Large bridging loans are limited in practice by four things:
Value and LTV: the loan is a percentage of a valuation the lender accepts.
Lender ticket size: each lender has a maximum it will hold on one loan or with one borrower.
Concentration: lenders limit exposure to one asset class, location or sponsor.
Exit capacity: the refinance or sale must be able to repay the full amount, and very large exits take time.
Scale
Who typically lends
What changes
Standard commercial bridging
A wide range of specialist lenders and banks
Product-style terms, quick turnaround
Several million
Larger specialist lenders, private credit funds, specialist and private banks
Credit committee approval, negotiated terms, enhanced due diligence
Tens of millions and above
Funds, banks and syndicates or club deals
Full legal documentation, multiple advisers, longer timetable
When a loan is too big for one lender, or a lender wants to share the risk, the facility can be split:
Structure
How it works
When it is used
Single lender
One lender provides and holds the whole loan
Within that lender's ticket size
Club deal
A small group of lenders each take a share on the same terms
Loans beyond one lender's appetite
Syndicated loan
A lead arranger agrees terms and sells participations to other lenders; a security agent holds the charges for all
The largest facilities
Senior and mezzanine
A first charge senior loan plus a second ranking mezzanine loan, governed by an intercreditor agreement
Where more borrowing is needed than senior debt alone allows
For you, a syndicated or club facility usually means one set of loan documents and one point of contact, but approval from more than one credit committee. Mezzanine increases total borrowing at a higher cost and more legal complexity, so model it carefully.
Have a deal in front of you?Send us the property and the numbers. We will tell you quickly whether it is fundable.
What due diligence do lenders carry out on large bridging loans?
Expect lenders to go much further than on a standard commercial bridge. Typical requirements include:
Enhanced KYC and source of wealth: full ownership structure, ultimate beneficial owners, offshore entities and where the equity comes from.
A report on title or certificate of title from your solicitors, covering every property.
A tenancy schedule with lease terms, rents, arrears and break dates.
Building and environmental reports, particularly for industrial land and older buildings.
Planning and building safety reviews where relevant.
A cost report from a quantity surveyor if works are being funded.
Insurance review of reinstatement values and cover.
Most of this can be prepared before terms are issued. Having it ready is the single biggest factor in hitting a completion date on a large loan. Our guide to bridging for limited companies covers SPV and group structures.
How are large commercial properties valued for bridging?
On large bridging loans, lenders usually instruct a larger RICS valuation firm with a national or sector-specialist practice. The valuer reports market value and may be asked for additional figures, such as value with vacant possession, value under a restricted marketing period, or value on completion of works.
Portfolios raise their own questions. Valuers may report both the sum of the individual values and a portfolio value for the assets sold together, and lenders often lend on the lower. Large single buildings can also carry a lot-size effect, because fewer buyers can afford them. Trading assets such as hotels and care homes are valued with regard to their trading performance.
Facility documents may also carry covenants, such as a maximum LTV or minimum income cover, with reporting obligations through the term.
Which exit strategies do lenders accept on large loans?
The bigger the loan, the harder the lender will look at the exit. Common routes are:
Refinance onto a commercial investment facility once the asset is let or stabilised. See our comparison of bridging and commercial mortgages.
Sale of the asset, or staged sales from a portfolio using release prices.
Development finance, where the bridge has carried a site through planning.
Capital from elsewhere, such as an equity raise or the sale of other assets.
Lenders will want to see that an exit of this size is achievable within the term, ideally with a refinance lender's indicative terms or agents' advice on a sale. Our guide to exit strategies sets out the evidence for each route.
Is there a cheaper alternative to a large bridging loan?
If time allows and the asset is income-producing, a commercial investment loan or bank facility will usually cost less over its life. If you are building, development finance is the natural product. Joint venture equity can reduce the debt needed. Our guide to alternatives to bridging loans compares them.
Large bridging loans earn their place when speed, an unstabilised asset or a complex situation means those cheaper options cannot deliver in time. We will tell you plainly if a term facility would do the job better.
Unregulated commercial and investment bridging is arranged directly. Any case where the security includes a home you or an immediate family member occupies, including a flat above commercial premises, may be regulated and is introduced to a firm directly authorised by the Financial Conduct Authority. We are not directly authorised by the Financial Conduct Authority ourselves. Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
A £200,000 loan is a standard rather than a large bridge. Its cost is monthly interest for the period it runs, plus an arrangement fee of around 1% to 2%, which is £2,000 to £4,000, and valuation and legal fees. Interest varies with loan to value and risk. Our bridging cost calculator models the total over your expected term.
What does Martin Lewis say about bridging loans?
We cannot speak for any commentator. The general consumer message is that bridging is short-term, more expensive than a mortgage and needs a clear exit. On large commercial loans that is even more important: understand the total cost, the default and extension terms, and how the exit will repay the full amount within the term.
How big a bridging loan can I get?
There is no fixed maximum. The loan is limited by the property value and the LTV a lender will offer, commonly up to 70% to 75% on a first charge for standard commercial property, by each lender's maximum ticket size and by the exit. Very large facilities are often provided by funds or groups of lenders through club or syndicated deals.
Is there a cheaper alternative to a bridging loan?
Often, if time allows. A commercial investment loan or bank facility is usually cheaper for a let, stabilised asset, and development finance suits construction. Joint venture equity can reduce borrowing. A large bridge is worthwhile when speed, an unstabilised asset or a complex situation means the cheaper options cannot complete in time.
How long does a large bridging loan take to complete?
Longer than a standard bridge, because of enhanced due diligence, larger valuations, credit committee approval and full legal documentation. Preparation is the biggest factor. With the ownership structure, tenancy schedule, title information and exit evidence ready at the start, a large case moves much faster than one assembled as the lender asks.
Do large bridging loans need personal guarantees?
Not always. On large loans to well-capitalised borrowers with low gearing, lenders may accept limited guarantees, corporate guarantees or, occasionally, no personal recourse. The position is negotiated with the rest of the terms. Always take independent legal advice before signing any guarantee.
