TAB has successfully transitioned a bridging loan into a long-term mortgage for a commercial office building in Wakefield through its ‘TAB Series’ product.
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 of 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 loan-to-value (LTV) of 65%.
Throughout the loan, the borrower successfully increased occupancy to 30% to 40%, with the property now generating a passing rent of £159,869 per annum.
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.
Jason Shead, chief risk officer at TAB, said: “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.”
Mo Chishti, managign director of Total Money Management, said: “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.”
