Bridging Finance Enables Hospitality Operator to Complete Long-Planned Freehold Acquisition

The Situation

Under a business agreement established in 2021, the client was granted the right to acquire the freehold of the property within five years. During that period, they invested heavily in renovating the premises, strengthening security and growing the business's trading profile. With the purchase option window drawing to a close, an option agreement was signed in March 2026 and the client moved to exercise their right to purchase, creating a clear and time-sensitive deadline.

The transaction carried a number of complexities. The property was being acquired below market value which, while favourable for the client, limited the available exit options in the open market. The directors held no personal property, reducing the security available to lenders. The hospitality sector also requires careful underwriting given its inherent sensitivity to trading conditions. Mainstream lenders were unlikely to accommodate the combination of a below market value purchase, a trading business as primary security and the speed required to execute the option.

The Solution

We structured an £875,000 bridging loan at 58% LTV on a 12-month serviced term, completing in just over five weeks from application. The loan was sized against the vacant possession value of the property, providing a robust security position and a conservative approach to the below market value acquisition.

Underwriting took a hands-on approach throughout. The client's exit was assessed in full, with trading statements reviewed to evidence consistent cash flow and confirm the business's ability to refinance onto a longer-term facility supported by those financials. The five years of proven trading history on the asset, combined with the investment made during the tenancy and the diversified revenue base, gave the team confidence in both the borrower and the underlying security.

When a shortfall in funds emerged during the process, West One's underwriting team worked proactively with the client to find a workable solution. It was agreed that the balance would be funded by an early inheritance from one of the directors' mothers, who signed a deed of gift, enabling the deal to complete within the required timeframe.

The Benefit

West One's ability to assess complex commercial scenarios, combining a trading hospitality business, a below market value purchase and a tight contractual deadline, enabled a deal that would have been difficult to place elsewhere. Rather than treating the funding shortfall as a blocker, the underwriting team engaged constructively to find a solution that worked for the client without compromising the integrity of the deal. The result was a responsibly structured loan that gave the client the certainty they needed to complete on time.