Commercial BMV Bridging: Buy Well, Bridge Smart

Commercial BMV Bridging

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At MS Lending Group we pride ourselves on providing fast, flexible and reliable short term property finance. Commercial opportunities bought at a discount rarely stay available for long, and a slow lender is often the reason they are lost. We don’t work with tick boxes; we assess every case on its own merits, provide an agreement in principle in just a few hours, and give you direct access to the decision makers.

Our commercial below market value bridge is built on a simple idea: buy well, bridge smart. Where you have negotiated a commercial asset for less than it is worth, we lend against the deal you have done, releasing up to 80% of the purchase price so more of your own capital stays available for the next acquisition.

What is a Commercial Below Market Value Bridge?

A commercial below market value bridge is a short term loan secured against a commercial or semi commercial property bought for less than its underlying worth. Instead of sizing the facility on value alone, below market value commercial bridging recognises the discount you have negotiated and lends a higher proportion of the price you actually paid.

This matters most on commercial stock, where deposits are typically larger and deals are frequently won on speed and certainty rather than on price alone. By bridging against market value in this way, the strength of the purchase reduces the cash you need at completion.

How Our Commercial BMV Bridging Works

Our below market value commercial bridging loan works on two straightforward rules:

• We lend up to 80% of the purchase price of the property.
• The loan must not exceed 60% of the 180 day value.

The 180 day value is the figure a valuer considers achievable within a restricted, 180 day marketing period. It is a more conservative measure than open market value and it is the benchmark we use on commercial assets, because it reflects what the property would realistically achieve in a shorter sale.

Example

• 180 day value: £1,000,000
• Purchase price (PP): £750,000
• We lend up to 80% of PP: £600,000

In this example the £600,000 advance is exactly within 60% of the £1,000,000 180 day value, so the deal works. You complete a £750,000 commercial purchase with £150,000 of your own funds, rather than the far larger deposit a standard commercial bridge would demand. More value, more opportunities.

More Value, More Opportunities

Our below market value product was designed around how commercial property investors actually buy. Four things set it apart:

• Higher Access to Funds: we lend up to 80% of the purchase price, well beyond what most short term commercial lenders will consider.
• Designed for Investors: helping investors secure maximum value from new opportunities, with terms built around the way you buy.
• Greater Flexibility: funding shaped around your purchase, not forced into a fixed template.
• Built for Speed: when an opportunity arises, we move quickly, with terms issued within hours.

What Commercial BMV Bridging Can Be Used For

Below market value property finance suits a wide range of commercial situations. Some of the most common include, but are not limited to, the following:

• Offices and retail units: acquiring single units or blocks where the vendor is pricing for a quick, certain sale.
• Industrial and warehouse assets: including vacant units where a discount reflects the letting risk you are prepared to take on.
• Semi commercial property: mixed use assets with a commercial element and residential accommodation above.
• Portfolio and off market acquisitions: buying direct from a vendor, a receiver or an existing landlord at a negotiated discount.
• Repositioning and re letting: securing the asset now, then refinancing onto a longer term facility once income is stabilised.
• Capital retention: keeping your own funds free for the next acquisition rather than committing them to a large deposit.

The common thread is straightforward: commercial BMV bridging gives you access to funds fast, which is exactly what we do day in, day out.

Eligibility Criteria: Who Can Benefit from Commercial BMV Bridging

This product is built for property investors. Whether you buy as a sole trader, a limited company or an SPV, a commercial below market value bridge is designed around the deal in front of us rather than a rigid template.

As with all of our lending, we look at the practical detail: the strength of the purchase, the valuation evidence supporting the 180 day figure, the tenant position where the asset is income producing, and the credibility of your exit, whether that is a sale or a refinance onto a longer term facility.

Because our bridging finance on commercial and investment property is unregulated, we have the flexibility to assess each case on its own merits rather than applying blanket criteria. If the discount is genuine and the plan is sound, commercial BMV bridging could still be a viable option even where you do not fit traditional lending criteria.

Commercial BMV Bridging: Timeline of an Application

Applying for below market value commercial bridging with MS Lending Group is designed to be straightforward and efficient. When you have negotiated a discount, time is usually the thing protecting it, so we keep the process moving. Here is an overview of the typical timeline:

Step 1: Get in touch

Contact our team with the basic details of the purchase, including the price agreed, the asset type and the tenant position if the property is let. Our team will explain the next steps, answer any initial questions and begin shaping a solution around your plans.

Step 2: Consultation and action plan

We will look at the specifics of your application, including how the discount has been achieved, the valuation approach and the 180 day figure, your proposed exit strategy and the documentation required. On commercial purchases we are able to utilise Desktop Valuations of gross loans up to £500k.

Step 3: Decision and release of funds

Once your documentation has been submitted we review the application promptly. Upon approval you can expect a decision quickly, with funds released so you can complete without delay and take control of the asset.

Worked Example: A Commercial BMV Purchase

An investor agrees the purchase of a fully let trade counter unit at £750,000, having negotiated directly with a vendor who needs a fast, certain completion. A valuation supports a 180 day value of £1,000,000.

Under our commercial below market value bridge we could lend up to 80% of the £750,000 purchase price, being £600,000, which sits within 60% of the 180 day value. The investor completes with £150,000 of their own funds and retains the balance of their capital to pursue a second acquisition, before refinancing onto a longer term facility once the income position is settled.

Why Choose MS Lending Group for Commercial BMV Bridging

So, why choose us?

At MS Lending Group we understand that a well negotiated commercial purchase is a perishable opportunity. Our job is to fund it before it disappears, which is why we offer terms within hours, direct access to decision makers and a genuine case by case approach on every commercial deal.

We have countless cases that demonstrate our expertise as a commercial short term property finance provider, and we are confident you can invest with confidence alongside us at MS Lending Group.

frequently asked questions

How Much Can I Borrow With a Commercial BMV Bridge?

We lend up to 80% of the purchase price, provided the loan does not exceed 60% of the 180 day value. For example, on a commercial property purchased for £750,000 with a 180 day value of £1,000,000, we could lend up to £600,000. Contact our team and we will confirm what is achievable on your specific purchase.

What is the 180 Day Value and Why Do You Use It?

The 180 day value is the figure a valuer considers achievable if the property were marketed for a restricted period of 180 days, rather than an open ended one. It is a more conservative measure than open market value and we use it on commercial assets because it reflects what the property would realistically achieve in a shorter sale, which keeps the facility sensibly geared.

Is Commercial BMV Bridging Regulated?

No. Our bridging finance on commercial and investment property is not regulated by the Financial Conduct Authority. This product is intended for property investors purchasing commercial and semi commercial assets, and it gives us the flexibility to assess each case on its own merits.