blog mortgage118

Tag: commercial property

  • Redwood Expands 100% Valuation Cashback for Bridging Finance

    Redwood Expands 100% Valuation Cashback for Bridging Finance

    Redwood Bank has announced an expansion of its 100% valuation cashback offer to include bridging and commercial finance. Initially launched in July for residential investment mortgages, this incentive allows experienced property investors and landlords to reclaim their valuation fees upon loan completion, easing some of the upfront costs associated with property transactions.

    TL;DR: Redwood Bank now offers 100% cashback on valuation fees for bridging and commercial loans; this benefits landlords and property investors looking to reduce upfront costs.

    How Does the Bridging Finance Cashback Offer Work?

    The cashback initiative allows customers to receive their valuation fee back when their loan completes. This applies not only to Redwood’s residential investment mortgages, such as buy-to-let and multi-unit freehold blocks, but also to those engaging in bridging finance and commercial property transactions. The move aims to alleviate financial pressure on landlords and investors during the purchasing or refinancing process.

    What Changes Have Occurred in Redwood’s Bridging Finance Proposition?

    In 2026, Redwood Bank has made several adjustments to its lending offerings, including the introduction of bridging finance. This strategic expansion reflects a growing demand for flexible financing solutions among property investors. The cashback offer is part of Redwood’s ongoing efforts to enhance its competitive edge in the market.

    What This Means for Landlords and Property Investors

    For landlords and property investors, this expanded cashback offer is significant as it reduces the initial costs associated with securing financing. With the ability to recover valuation fees, investors can allocate funds more effectively, potentially allowing for further investment opportunities. This initiative is particularly beneficial for those involved in commercial property, where upfront costs can be substantial.

    Frequently asked questions

    Who is eligible for the cashback offer?

    Experienced property investors and landlords purchasing or refinancing commercial properties, as well as those using Redwood’s residential investment mortgages, are eligible for the cashback.

    How does this impact the bridging finance market?

    This cashback offer may attract more investors to the bridging finance market, as it reduces the financial burden of initial valuation costs, making it a more appealing option for property transactions.

  • Planning Reform and Landlord Support Needed for Bridging Finance

    Planning Reform and Landlord Support Needed for Bridging Finance

    The call for planning reform and enhanced support for landlords has intensified as the UK prepares for a new Prime Minister. TAB, a commercial mortgage and bridging lender, argues that the specialist finance sector could significantly contribute to housing supply and regeneration projects, yet is hindered by current planning delays and tax policies.

    TL;DR: TAB urges the next Prime Minister to implement planning reforms and support for landlords; these changes could unlock investment in commercial and mixed-use properties, addressing housing demand.

    What Planning Reforms Are Being Suggested?

    Karen Rodrigues, sales director at TAB, emphasises the need for a refreshed planning system that includes statutory deadlines and better resourcing for local authorities. She advocates for a presumption in favour of converting redundant commercial spaces, which would expedite change-of-use applications. This reform is essential as the current planning system is perceived to be moving too slowly, hampering the potential for businesses and investors to thrive.

    How Will This Impact Landlords and Property Investors?

    According to TAB, the private rented sector (PRS) is important for meeting housing demand, especially in light of insufficient social housing. Rodrigues argues that landlords should not be viewed merely as a tax revenue source but as vital contributors to the housing market. She calls for the reinstatement of mortgage interest tax relief for individual landlords, the removal of the stamp duty surcharge, and the reintroduction of the Wear and Tear Allowance. These changes could alleviate financial pressures on landlords, encouraging them to invest in and maintain rental properties.

    What Changes Are Needed for Business Rates?

    Rodrigues also highlights the need for reform in business rates, which she describes as a significant burden on high streets and mixed-use investments. Lowering rates for independent retailers and hospitality businesses could help rejuvenate local economies and support tenants in semi-commercial properties. The call for reform aims to create a more conducive environment for local businesses, which is essential for the vitality of high streets.

    What This Means for Bridging Finance

    Bridging finance plays a critical role in facilitating quick funding for property transactions, particularly in the context of regeneration projects. However, the current tax market and planning delays create friction in the property market, making transactions less appealing. TAB suggests that reforms, such as lowering stamp duty rates on commercial and mixed-use acquisitions, could stimulate activity in the property sector. By addressing these issues, the next Prime Minister could support a more dynamic market for bridging finance, ultimately benefiting landlords, borrowers, and investors alike.

    Frequently asked questions

    What is bridging finance?

    Bridging finance is a short-term loan used to bridge the gap between the purchase of a new property and the sale of an existing one. It is often used in property transactions where quick access to funds is needed.

    How can planning reforms benefit property investors?

    Planning reforms can streamline the approval process for property developments, making it easier for investors to convert commercial spaces into residential or mixed-use properties, thereby increasing supply and potential returns.

  • Planning Reform Needed to Boost Bridging Finance Sector

    Planning Reform Needed to Boost Bridging Finance Sector

    The call for planning reform and landlord support has intensified as the next Prime Minister prepares to take office. TAB, a commercial mortgage and bridging lender, argues that the specialist finance sector can significantly contribute to housing supply and regeneration projects. However, current planning delays and tax policies are hindering investment in commercial and mixed-use property markets.

    TL;DR: TAB urges the next Prime Minister to implement planning reforms to expedite development; this will directly benefit landlords and investors seeking to rejuvenate the property market.

    What Planning Reforms Are Needed?

    Karen Rodrigues, sales director at TAB, emphasizes the necessity of a revamped planning system. She advocates for the introduction of statutory deadlines, enhanced local authority resources, and a presumption in favour of converting redundant commercial spaces. These changes would streamline the approval process for change-of-use applications, making it easier to transform vacant retail and office units into mixed-use developments.

    Rodrigues highlights the disparity between the speed of commercial mortgage delivery and the sluggish planning process, stating that while TAB can offer bridging finance quickly, the planning system often lags behind. This slow pace is detrimental to businesses and investors who rely on timely approvals to move projects forward.

    How Will This Impact Landlords?

    According to TAB, the private rented sector (PRS) plays a vital role in addressing housing demand, especially as the country grapples with a shortage of social housing. Rodrigues argues that the next government must support landlords, who have been treated primarily as tax revenue sources by successive administrations.

    Key suggestions for reform include reinstating mortgage interest tax relief for individual landlords, eliminating the stamp duty surcharge, and reviving the Wear and Tear Allowance. These measures would alleviate financial pressures on landlords, encouraging them to invest in and maintain rental properties, which is essential for meeting housing needs.

    What Changes Are Needed for Business Rates?

    Rodrigues also calls for a reassessment of business rates, which she describes as a significant burden on high streets and mixed-use investments. She advocates for lower rates for independent retailers and hospitality businesses, arguing that such policies would support tenants in semi-commercial properties and help rejuvenate struggling high streets.

    By reducing business rates, the government could create a more conducive environment for local businesses, which in turn would benefit landlords and investors in the commercial property sector.

    How Does This Relate to Bridging Finance?

    For property investors and borrowers, the proposed reforms could unlock new opportunities in the bridging finance sector. A more efficient planning system would facilitate quicker project approvals, allowing investors to capitalize on market opportunities without the delays currently experienced. Additionally, reforms aimed at supporting landlords could enhance the attractiveness of the rental market, encouraging more investment in residential properties.

    As the next Prime Minister takes office, stakeholders in the property market should closely monitor any announcements regarding these reforms, as they will directly impact investment strategies and financing options. For more information on how bridging finance can be utilized in property investments, consider reviewing our bridging finance guide.

    Frequently asked questions

    What is bridging finance?

    Bridging finance is a short-term loan used to bridge the gap between purchasing a new property and selling an existing one. It is often used in property transactions to provide quick access to funds.

    How can planning reform benefit property investors?

    Planning reform can expedite the approval process for developments, allowing property investors to complete projects more quickly and efficiently, thus maximizing their investment potential.

  • Landlords Shift Focus to Commercial and Mixed-Use Properties

    Landlords Shift Focus to Commercial and Mixed-Use Properties

    Recent trends indicate that landlords are increasingly turning their attention to commercial and mixed-use properties, moving away from traditional buy-to-let (BTL) investments. This shift is largely driven by changes in tax regulations and the evolving market of the rental market, which have made commercial properties more attractive despite their complexities.

    TL;DR: The volume of commercial and mixed-use property purchases rose by 18% from 2022 to 2025, as landlords seek better yields; traditional BTL investors face higher costs and regulatory challenges.

    Why Are Landlords Moving Away from Traditional BTL?

    Landlords are reevaluating their investment strategies due to significant changes in tax and regulatory frameworks. The increase in stamp duty for second homes and the introduction of the Renters’ Rights Act have made traditional BTL investments less appealing. For instance, a standard BTL property priced at £400,000 incurs a stamp duty bill of £30,000, while properties with commercial elements benefit from a significantly reduced stamp duty of £9,500. This financial incentive is prompting many landlords to explore commercial opportunities.

    What Are the Trends in Commercial and Mixed-Use Property Purchases?

    Analysis by lender Together reveals a notable 18% increase in the volume of commercial and mixed-use property purchases, rising from 95,660 in 2022 to 113,750 in 2025. Additionally, the number of semi-commercial and commercial mortgages written has increased by 9.8%, from 1,538 to 1,690 during the same period. This uptick suggests a growing interest among landlords in diversifying their portfolios with properties that can offer more stable returns.

    What This Means for Landlords

    Landlords considering a shift to commercial or mixed-use properties will need to navigate a more complex market. While these investments can yield higher returns, they also require the expertise of specialist brokers to structure deals effectively. The complexities associated with commercial properties have deterred many average investors, resulting in a decline in property prices by as much as 15% over the last four years. This price correction provides an opportunity for savvy landlords to enter the market at a lower cost.

    How Can Landlords Adapt to These Changes?

    To successfully transition into commercial or mixed-use properties, landlords should conduct thorough market research and consider the specific requirements of such investments. For example, some landlords are exploring the conversion of residential properties into C2 use for childcare, which involves obtaining an Ofsted rating. This expansion into different sectors, including corporate tenancies and HMOs, reflects a broader strategy to mitigate risks while capitalizing on emerging market trends.

    Frequently Asked Questions

    What are the benefits of investing in commercial properties?

    Investing in commercial properties can provide higher yields compared to traditional BTL investments. Additionally, properties with mixed-use elements can offer tax advantages, such as lower stamp duty costs.

    What should landlords consider before investing in commercial properties?

    Landlords should assess their risk appetite, seek advice from specialist brokers, and understand the regulatory requirements associated with commercial properties. Conducting thorough market research is also important to ensure a successful investment.

  • TAB Secures Bridging Finance for Barnsley Asset

    TAB Secures Bridging Finance for Barnsley Asset

    A recent bridging finance deal has seen TAB complete a facility for a commercial property in Barnsley. This transaction is significant as it highlights the growing trend of using bridging finance to facilitate quick acquisitions and portfolio expansion for early-stage investors.

    TL;DR: TAB has provided bridging finance for a Barnsley industrial property; this supports an early-stage investor’s growth plans.

    What is the structure of the bridging finance?

    The bridging facility was structured at a loan-to-value ratio and is secured against a detached commercial property comprising four self-contained units. This arrangement not only refinances the existing asset but also releases funds to enable the borrower to acquire a second site, thereby expanding their commercial property portfolio.

    How does this impact early-stage commercial investors?

    This bridging finance arrangement is particularly relevant for early-stage commercial investors looking to grow their portfolios. By renegotiating tenancy agreements on the existing asset, the borrower enhanced rental income, which strengthened the deal’s viability. This proactive approach demonstrates how strategic management of existing assets can facilitate further investments.

    What this means for bridging finance in the UK

    The successful coordination between TAB and the introducing firm underscores the importance of effective communication in bridging finance transactions. Quick capital release, as evidenced in this case, allows borrowers to seize opportunities without delay. Investors and brokers should watch for similar trends, as the demand for bridging finance continues to grow in the commercial sector.

    Frequently asked questions

    What is bridging finance?

    Bridging finance is a short-term loan used to bridge the gap between immediate cash needs and long-term financing solutions, often used in property transactions.

    How can bridging finance benefit property investors?

    Bridging finance can provide quick access to funds for property acquisitions, allowing investors to act swiftly on opportunities and manage existing assets effectively.