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Bridge-to-let cost calculator: what the company's bridge really costs, and what the exit must cover
Bridges price by the month and rolled interest compounds, so the redemption figure is always bigger than it first looks. Model the total cost of a company bridge below, with interest rolled or serviced, and the figure the SPV's buy-to-let exit mortgage needs to clear.
Bridge pricing varies by LTV, asset type and exit certainty. Get an indicative term sheet from us in 24 hours.
How SPVs use bridge-to-let
Bridge-to-let is the company landlord's tool for property that cannot take a mortgage yet: auction purchases on 28-day completions, unmortgageable stock without a kitchen or bathroom, and refurbishment projects bought below market value. The SPV buys on the bridge, does the works, lets the property, then refinances onto a limited company buy-to-let mortgage at the new value, ideally pulling most of the cash back out for the next deal. The whole strategy lives or dies on the exit arithmetic: the term lender will advance against the post-works value through the LTV cap and against the rent through the 125% company ICR, and the redemption figure has to fit inside whichever is smaller. That is why we underwrite the exit first and choose the bridge second, and why the two halves of the deal are best placed by one broker who can see both.
Check the exit with the SPV stress test calculator, see how the deposit and works funding get into the company in our company deposit guide, or start from the limited company buy-to-let mortgages hub.
Company bridging questions
Can a limited company take a bridging loan?
Yes, and company borrowers are the bridging market's home crowd: an SPV buying at auction, funding a refurbishment or rescuing a broken chain is exactly what short-term lenders underwrite daily. The structure works the same way as a company mortgage, the SPV borrows, the directors give personal guarantees, and deposit provenance is documented, with the added requirement of a credible exit.
What does the exit mean on a company bridge-to-let?
The exit is how the bridge gets repaid, and for bridge-to-let it is a limited company buy-to-let mortgage on the finished property. The redemption figure this calculator produces, principal plus rolled interest plus fees, is what the term mortgage has to cover, and that mortgage is constrained by the rent through the 125% company ICR and the post-works value through the LTV cap. We place the exit before the bridge, not after, so the company is never stranded on expensive short-term money.
Should the company roll up the interest or service it monthly?
Rolled interest compounds into the redemption figure, costs more in total, and eats into the equity the exit mortgage can refinance, but it preserves cashflow during works when the property earns nothing. Serviced interest is cheaper overall but the lender will assess whether the company or its directors can evidence the monthly payments. The calculator models both so you can see the true gap on your figures.
What does bridging cost a company borrower?
Pricing is monthly, not annual, and varies with loan-to-value, property condition and the strength of the exit, with arrangement, valuation, legal and sometimes exit fees on top. The headline monthly rate is the least useful number on the quote; total cost over the realistic term, which is what this calculator computes, is the comparison that matters across the panel's bridging names.