| Purchase price | £1.6m |
| Loan | 90% of the purchase price |
| Property | Commercial warehouse, Bristol |
| Basis | Unregulated commercial bridging |
| Security | The warehouse itself |
| Discount evidence | Independent valuation above the agreed price |
A commercial buyer secured a warehouse in Bristol for £1.6m, priced under its open market value. FD Commercial arranged below market value bridging at 90% of the purchase price, completing the purchase against a deposit far smaller than a standard commercial acquisition would have required.
The situation
Commercial warehousing is exactly the kind of asset where a genuine below market value opportunity can move fast, and where most lenders are too slow, or too unwilling to look at a discounted commercial purchase at all, to be useful to the buyer. An independent valuation confirmed the open market figure sat above the agreed price, which is what let us structure the deal against the discount rather than the purchase price alone.
The structure
We arranged the bridge on an unregulated commercial basis, secured against the warehouse itself. At 90% of the £1.6m purchase price, the buyer needed to find a fraction of the deposit a conventional commercial mortgage or a standard bridge would have asked for, freeing capital for fit-out or the next acquisition.
Why it matters
Below market value bridging is not a residential-only tool. Warehousing, industrial units, and other commercial property qualify on exactly the same basis as a house or a block of flats, provided the discount is genuine and evidenced. See our full guide to below market value bridging finance for how the 90% and 75% limits work, and our case studies on a London MUFB and a Midlands residential portfolio for how the same structure applies at different scales.
Completed transaction. This case study describes a live deal arranged by FD Commercial. Client details are anonymised and figures rounded.
Rates quoted are indicative and subject to change. Actual rates depend on individual circumstances, security, and lender appetite at the time of application. Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Agreed a price below open market value? Send us the valuation evidence and we will tell you what the deal will carry and what it costs.
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