Mottingham, South East London — security property
A property investor needed to move quickly to secure a discounted residential investment. The available security was a commercial vehicle showroom in South East London, recently let on a 15-year lease at £121,000 per annum. Rather than commissioning a new valuation and waiting weeks for the result, AF Credit assessed the case internally — and completed without a surveyor setting foot on the property.
Mottingham, South East London — security property
The borrower needed to fund a residential purchase quickly. The available security was a commercial showroom that had recently been relet — but commissioning a new commercial valuation would have added cost and taken weeks, putting the purchase at risk.
AF Credit reviewed the existing valuation evidence alongside the new 15-year lease, contracted rental income and current market comparables. Rather than requiring a new physical inspection, we underwrote the case internally and completed at 44% LTV — keeping leverage conservative throughout.
£620,000 released against the commercial showroom. The borrower completed the residential purchase before the opportunity was lost. No valuation fee paid. No surveyor delays. The commercial security remained fully let with long-term contracted income and a clear refinance exit.
Property investors with commercial assets on their balance sheet are sometimes better placed than they realise to move quickly on residential opportunities. The challenge is unlocking the equity in a commercial property fast enough to act — particularly when a new commercial valuation would take two to four weeks and cost several thousand pounds.
In this case, the borrower owned a commercial vehicle showroom in Mottingham, South East London. The property — 7,395 sq ft of purpose-built commercial space — had recently been let on a new 15-year lease at £121,000 per annum, supported by a 14-month rental guarantee. The investment profile of the asset had improved materially as a result of the new tenancy.
A residential investment property in Chigwell had become available at a discount. The borrower had agreed terms and needed to complete quickly. Waiting four weeks for a new commercial inspection was not an option — the opportunity would have been lost.
The question was whether AF Credit could underwrite the commercial security without requiring a fresh physical survey.
The SecurityThe security for this facility was a commercial vehicle showroom in Mottingham, South East London. The property had the following characteristics at the time of lending:
The combination of a long lease term and substantial contracted income gave the property a strong investment profile — one that a commercial mortgage lender would be well-positioned to refinance against at the end of the bridge term.
Deal Structure| Item | Detail |
|---|---|
| Security | Commercial vehicle showroom |
| Security location | Mottingham, South East London |
| Property size | 7,395 sq ft |
| Security value | £1,575,000 |
| Net loan amount | £620,000 |
| LTV | 44% |
| Interest rate | 0.79% per month |
| Term | 10 months |
| Interest structure | Retained |
| Charge | First legal charge |
| Valuation | No new valuation — internal assessment |
| Valuation cost | Nil |
| Tenant | New 15-year commercial lease |
| Contracted rent | £121,000 per annum |
| Rental guarantee | 14 months |
| Purpose of funds | Purchase of residential investment property, Chigwell |
| Exit strategy | Refinance to commercial mortgage |
Not every commercial property will qualify for an internally assessed bridging loan. Several factors need to align — and in this case, they did.
AF Credit completed a £620,000 bridging loan against the commercial showroom in 10 months, with retained interest and a first legal charge. No new valuation was commissioned. No surveyor visited the property. The borrower paid nothing in valuation fees and avoided the weeks of delay a new commercial inspection would have required.
The residential investment in Chigwell was secured before the opportunity was lost. The commercial security remained fully let on a long-term lease with contracted income, well-positioned for refinance onto a commercial mortgage at the end of the bridge term.
This case illustrates a principle that is often overlooked: where a commercial property has strong existing evidence, a long-term tenant and conservative leverage, a lender with genuine in-house underwriting capability does not always need to instruct a new surveyor. The evidence already on the table can be sufficient — and acting on it quickly can make the difference between completing a deal and losing it.
Frequently Asked QuestionsYes. Specialist bridging lenders can accept commercial property as security — including offices, retail units, industrial buildings and vehicle showrooms. The assessment focuses on the value of the security, the loan-to-value and the borrower's exit strategy. AF Credit lends against commercial assets where the evidence base is sufficient and the LTV is appropriate.
In the right circumstances, yes. Where existing valuation evidence is credible and well-supported, and the property's profile has been strengthened by a new long-term lease or contracted income, a specialist lender may be able to underwrite the case internally without requiring a fresh physical inspection. This saves both the cost of a new valuation and the time taken to arrange one.
An internally assessed bridging loan is one where the lender underwrites the value of the security using existing evidence — prior valuations, comparable sales, lease documentation and rental data — rather than commissioning a new physical inspection. Not all lenders can do this, and it is not appropriate in every case. Where the LTV is conservative and the evidence base is strong, internal assessment can replace a formal valuation and remove significant delay from the process.
Yes. A bridging loan secured against one asset can be used to fund the purchase of a different property — whether residential or commercial. In this case, the borrower raised capital against a commercial showroom and used the proceeds to complete the purchase of a residential investment property in Chigwell.
A long-term commercial lease with a creditworthy tenant significantly strengthens a commercial security. It provides contracted rental income, reduces vacancy risk and enhances the investment value of the property. In this case, a new 15-year lease generating £121,000 per annum, supported by a 14-month rental guarantee, materially improved the property's investment profile and supported the lending decision without requiring a new physical valuation.
Retained interest is a structure where the lender deducts the total interest for the loan term from the gross advance at the outset, so the borrower receives a net loan amount and does not need to make monthly payments during the term. The interest is effectively pre-paid and deducted upfront. This is useful where the borrower does not want to service monthly interest costs during the loan period.
The most common exit strategies are refinance onto a commercial mortgage, sale of the security property, or repayment from proceeds of a related transaction. In this case, the exit was refinance — the commercial showroom, secured by a 15-year lease at £121,000 per annum, was well-positioned to attract long-term commercial mortgage finance at a competitive LTV.
Removing the need to instruct a surveyor, wait for inspection availability and review a formal report can save two to four weeks. In time-sensitive situations — such as this case, where the borrower needed to complete a residential purchase before the opportunity was lost — that time saving can be decisive.
If you have existing valuation evidence and a strong case, AF Credit may be able to underwrite internally — removing the cost and delay of a new commercial inspection. Speak to our team and we will tell you straight whether your case qualifies.
Get same-day termsDisclaimer: Case study details have been anonymised to protect client confidentiality. All lending is subject to underwriting and credit approval is not guaranteed. Any property used as security may be repossessed if you do not repay your loan within the agreed term. AF Credit acts solely as a lender and does not provide financial advice.