Commercial Bridging Loan Coventry
Acquire a vacant or value-add commercial property on a 12 to 24 month bridge, refurbish or convert and let, then term out onto a long-term commercial investment mortgage. £500K to £5M typical. Bridge interest rate 0.75 to 1.10% pm; term-out 6.5 to 8.5% pa once stabilised. Active across Cathedral Lanes reconfigurations, Browns Lane (CV5) mixed-use plays, and Foleshill Road B2 to mixed-use conversions in CV6.
Bridge term
12 to 24 months
Bridge rate
0.75 to 1.10% pm
LTV (bridge)
Up to 70%
Term-out
6.5 to 8.5% pa
What is bridge-to-let and when does it make sense?
Commercial bridge-to-let is a two-stage facility. The first stage, the bridge, funds acquisition of a commercial property that is not immediately fundable on a long-term mortgage: vacant, partly tenanted, mid-refurbishment, mid-conversion, or with an unsigned lease at point of purchase. The second stage, the term-out, refinances the bridge onto a standard commercial investment mortgage once the asset is income-producing and the ICR test passes.
Bridges typically run 12 to 24 months, with interest serviced monthly or rolled-up into the loan balance (useful where the asset is not income-producing during the bridge period). Bridge LTV up to 70% of current value, sometimes higher with refurb-funded value where lenders consider GDV (gross development value). Bridge interest rate currently 0.75 to 1.10% pm, equivalent to 8.5 to 11.0% pa: meaningfully more expensive than long-term debt, but the right answer for a 12-month value-add play where no term lender will engage on the day-one position.
The agreed exit onto term debt is the underwriting comfort. Specialist lenders like LendInvest and Shawbrook either provide both legs (bridge then term with the same lender, on a pre-agreed product transfer) or partner with a sister term lender. InterBay Commercial takes selected larger Coventry cases on the bridging side. We model the all-in cost across the bridge period plus term-out so you see the true total cost of the strategy before drawdown.
Most commercial bridge-to-let is taken out by a limited company SPV with director personal guarantee, and is unregulated commercial lending. The exception: where the bridge is secured against a property with a residential element that the borrower will personally occupy, the deal can fall under FCA-regulated bridging rules and routes to a regulated bridging lender. Stamp duty land tax applies on the day-one purchase at standard commercial rates; it is paid by the buyer at completion of the bridge, not at term-out (because term-out is a refinance, not a fresh purchase). That timing matters for cash-flow planning on the deal. Indicative case seed: a Foleshill Road B2 freehold bought as a Class E plus C3 mixed-use conversion at £880K on an 18-month bridge at 0.95% pm, refurbished and converted under prior approval, termed out at 65% LTV at around 7.5% pa once let to a mix of independent commercial tenants and AST residential.
From auction or off-market acquisition to stabilised investment
1. Strategy review
We review the asset, the refurb or conversion plan, the target term-out exit. All-in cost modelled: bridge interest, bridge fees, term-out arrangement, valuation set.
2. Bridge terms in 48 hours
Bridge LTV, interest rate, term, fees from three specialist desks. Plus indicative term-out terms post-stabilisation.
3. Bridge completion
Bridge can complete in 2 to 3 weeks for clean cases. Asset acquired. SDLT paid at completion.
4. Conversion or refurb phase
Borrower executes the plan over 6 to 18 months. Property stabilises into income-producing asset with leases or AST tenancies in place.
5. Term-out refinancing
Once let with valid commercial leases or ASTs, refinance onto term mortgage at standard 6.5 to 8.5% pa pricing. ICR test passes.
6. Bridge redeemed
Bridge redeemed from term-out drawdown. Exit complete. Borrower now on long-term repayment schedule.
Deal types where short-term commercial debt is the right tool
- Cathedral Lanes reconfiguration plays where retail-led mixed-use floorplates are being re-cut for new lettings
- Browns Lane (CV5) mixed-use buyers picking up edge-of-Allesley sites with prior-approval potential
- Foleshill Road B2 to mixed-use conversion deals through Coventry City Council planning (industrial to Class E plus C3 reshuffles in CV6)
- Class E to HMO conversion plays across CV1, CV3 and CV6 within the combined Coventry University and Warwick walking belt
- Sui generis 7+ bed HMO conversion deals where Coventry City Council prior approval and full FUL applications need bridge funding through the determination cycle
- Investors buying vacant Westwood Business Park office floorplates for sub-division refurbishment and re-letting
- Trading-business operator buyouts where the new operator needs 12 months of accounts before high-street refinancing
- Auction-bought commercial assets (typical 28-day completion timeframe rules out term mortgage processing)
Active Coventry bridge-to-term value-add territory
LendInvest and Shawbrook are the most active commercial bridging desks for Coventry £500K to £5M deals; InterBay Commercial takes selected cases on the larger end. Together and Foundation Home Loans engage on the HMO-conversion bridging side. The standout value-add territory in 2026 is the Cathedral Lanes reconfiguration stream, the Browns Lane mixed-use pipeline and the Foleshill Road B2 to mixed-use conversion belt: Coventry runs strong sui generis (7+ bed) HMO change-of-use volume driven by the combined c. 65,000-student footprint of Coventry University and Warwick and the densest student-driven CM demand pool in our four-city Midlands set. The Cathedral Lanes reconfiguration stream produces consented retail-led mixed-use plays as Cathedral Quarter footfall stabilises post City of Culture 2021, and the Foleshill Road B2 to mixed-use conversion belt (anchored by the Bishopgate / Lockhurst Lane / Foleshill change-of-use volume from industrial / Class B2 to mixed-use and residential conversions in CV6) generates a steady flow of bridge-and-convert enquiries. The Browns Lane edge-of-Allesley (CV5) mixed-use pipeline picks up smaller redevelopment plots. Auction-bought assets are another standing source: the 28-day completion clock simply cannot be met by term-mortgage process. Far Gosford Street regeneration around the Coventry University estate produces a parallel stream of conversion-and-let cases.
Commercial Bridge-to-Let FAQs
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Exploring Commercial Bridge-to-Let for your Coventry scheme?
Free-of-charge scheme assessment. Indicative terms within 48 hours.