£2.44m Commercial Re-Bridge Completed in Two Weeks
With an existing bridge maturing on a fixed date and planning conditions still being signed off, an SPV developer needed a fast commercial re-bridge in Leicester. A2Z completed the £2.44m facility in two weeks — before the deadline — protecting the client from a 5% penalty and buying clean time to exit onto a development loan.
£2,440,000
Loan amount
70%
Loan-to-value
12 Months
Term
2 weeks
To completion
The Client Scenario
Our client — an SPV set up to deliver a residential conversion — held a Grade II listed commercial office building in Leicester (LE1) with planning consent to convert it into 62 flats. The site was valued at £3,500,000 .
An existing bridge against the building was due to mature on a fixed date. The plan had always been to refinance onto a development facility and start the conversion — but the development loan could not draw down until every planning condition had been formally discharged.
Satisfying those conditions took longer than expected. That left the client in a tight spot: a hard maturity date on one side, a development facility that wasn't ready to complete on the other, and a 5% penalty waiting on the existing loan if it ran past term.
For a £2.44m facility against a listed asset, getting the structure and the timeline right was everything.
What Could Have Gone Wrong
The real risk here wasn't the deal itself — it was the calendar. The development loan was the right long-term exit, but it simply couldn't complete before the existing bridge matured.
Push the wrong product to meet the date and the conversion stalls. Miss the date and the penalty bites. Neither was acceptable.
- Existing bridge maturing on a fixed date with no replacement facility ready
- A 5% penalty triggering on the maturing loan if it ran past term
- Development facility blocked until all planning conditions were discharged
- Pressure to accept unsuitable terms — or default — to beat the clock
The Solution
Rather than force the client onto a development loan that wasn't ready, A2Z arranged a commercial re-bridge — a fresh 12-month facility to replace the maturing loan cleanly and protect the timeline.
We secured a £2,441,799 facility at 70% LTV against the £3,500,000 listed asset, structured with 8 months of interest retained and 4 months serviced to keep it affordable through the conversion window, at 0.99% per month . The whole re-bridge completed in two weeks — ahead of maturity.
- Recognised the development loan couldn't complete until planning conditions were discharged
- Structured a 12-month re-bridge to replace the maturing facility cleanly
- Packaged the SPV and Grade II listed commercial asset for a lender comfortable at £2.44m
- Used 8 months retained + 4 months serviced to keep the facility affordable through the refurb
- Completed in two weeks — before the maturity date, avoiding the 5% penalty
- Mapped a clear exit onto a heavy refurbishment/development loan (internal conversion, no new structures)
The Outcome
£2.44m
Facility Secured
70%
LTV Achieved
2wk
Completed in Two Weeks
12mo
Term Secured
Beat the Maturity Deadline
5% Penalty Avoided
Frequently Asked Questions
Can I re-bridge a commercial property if my current loan is about to expire?
Yes. A re-bridge replaces a maturing bridging loan with a fresh facility, giving you more time without breaching your existing term. On this case we completed a £2.44m commercial re-bridge in Leicester in two weeks — before the existing loan matured — so the client avoided a 5% penalty and kept the conversion on track.
What is a re-bridge?
A re-bridge is a new bridging loan used to repay an existing one that is coming to the end of its term. It's commonly used when the planned exit — a sale, a remortgage, or a development drawdown — isn't quite ready. It buys clean, structured time so you aren't forced into a default or an unsuitable product to beat a deadline.
What happens if planning conditions aren't satisfied before my bridge matures?
It's a common pressure point on development sites — a development facility usually can't draw down until every planning condition is discharged. If that runs past your current loan's maturity date, a re-bridge holds the position while the conditions are finalised. That's exactly what we did here, with a clear exit mapped onto a heavy refurbishment/development loan once planning was fully satisfied.
What LTV is available on a commercial re-bridge?
It depends on the asset, the borrower, and the exit. 70% LTV — as secured on this £2.44m facility against a Grade II listed commercial building — is a strong outcome for a re-bridge on a specialist asset. Retaining some interest and servicing the rest can also make a larger facility more manageable through the term.
Facing a Tight Deadline of Your Own?
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