Commercial no valuation bridging loans
A guide to no valuation bridging loans on commercial property
Secure Funding Without the Wait for Full Valuations
Speed is everything in commercial property. Whether you’re buying at auction, refinancing under pressure, or raising capital from an existing portfolio, waiting weeks for a full RICS valuation can cost you the deal.
That’s where commercial no valuation bridging loans come in. By relying on desktop valuations, automated models (AVMs), or lender panel data, these facilities eliminate the need for lengthy inspections, allowing you to complete in as little as 3–7 working days.
At Aura Capital, we connect borrowers with specialist lenders who prioritise speed, certainty, and flexibility.
What is a No Valuation Bridging Loan?
A no valuation bridging loan is a short-term commercial facility secured against property where the lender does not require a new full valuation report. Instead, they rely on alternative methods such as:
Automated Valuation Models (AVMs): Data-driven desktop estimates.
Drive-by or Desktop Checks: Limited inspections or photographic evidence.
Historic Valuations: Previous reports, often within 6–12 months.
Panel Valuer Confirmation: Pre-approved figures from trusted sources.
The result? Faster completion times, reduced upfront costs, and smoother transactions.
Want to learn more?
For a detailed guide on bridging loans, explore the links below:
When to Use Commercial No Valuation Bridging
Auction Purchases – meet strict 28-day deadlines.
Urgent Refinancing – repay expiring commercial mortgages quickly.
Stopping Repossession – settle arrears before enforcement action.
Portfolio Equity Release – raise funds across multiple properties.
Short Deadlines – time-sensitive acquisitions where speed is critical.
Bridging for Restructuring – moving assets between lenders.
How No Valuation Bridging Works – Step by Step
1. Initial Enquiry & Decision in Principle (DIP)
Submit property details, loan size, and exit plan.
DIP provided within 24 hours.
2. Lender Assessment
Desktop or AVM valuation performed.
Lender reviews borrower background and exit strategy.
3. Offer Issued
Loan terms confirmed (amount, LTV, interest rate, fees).
4. Legal Process
Standard legal checks completed (title, charges, etc.).
Faster than full valuation process.
5. Drawdown & Completion
Funds released within 3–7 working days.
6. Loan Exit
Refinance to a long-term facility, or repay via sale.
Benefits of Commercial No Valuation Bridging
Speed: Avoid 2–3 week valuation delays.
Commercial Ready: Offices, retail, industrial, mixed-use accepted.
High LTV: Up to 75% net LTV.
Short-Term Flexibility: 3–18 month terms.
Equity Release: Unlock funds quickly for opportunities.
Investor Friendly: Overseas and portfolio borrowers welcome.
Common mistakes
Steer clear of lenders or brokers who may charge hidden fees or offer unfavourable terms. Always ensure that all costs, including fees and charges, are clearly outlined and transparent.
Partner with a reputable broker who prioritises your interests is key to avoiding lenders with negative reputations in the industry.
Before signing any agreement, it’s crucial to fully understand the terms and conditions of your no valuation bridging loan. Take the time to go through the loan details with your broker to ensure that the terms, interest rates, fees, and other conditions align with what the lender is offering and are consistent with current market standards.
Ensure that you’re applying to a well-capitalised lender with the necessary funds to complete your no valuation bridging loan. Be cautious of lenders funded via peer-to-peer platforms, as they may still be in the process of raising the capital needed to pay out your loan.
Before applying for a no valuation bridging loan, it’s essential to ensure you meet the lender’s full eligibility criteria to avoid unexpected cancellation costs and prevent delays. Some lenders only confirm if the criteria are met at the end of the process so get your broker to verifying that you meet the criteria early.
Case Studies
Urgent Office Refinance – London
Loan: £2.5m no valuation bridge
Need: Repay expiring facility within 7 days
Solution: Lender used AVM and panel data
Completion: 5 working days
Retail Portfolio – Midlands
Loan: £1m secured across 3 shops
Need: Equity release for new acquisition
Solution: Desktop valuation used
Completion: 8 days
Mixed-Use Auction Purchase – Manchester
Loan: £350k bridging finance
Need: Complete within 28 days, no time for RICS report
Solution: No valuation loan approved in 48 hours
Completion: 6 days
Industrial Warehouse Purchase – Birmingham
Loan: £750k
Need: Investor needed fast purchase funding for expansion
Solution: Historic valuation and drive-by used
Completion: 9 days
Overseas Investor – London Retail Unit
Loan: £1.8m
Need: Foreign buyer without time for UK survey
Solution: Lender accepted AVM + solicitor confirmation
Completion: 10 days
Risks and Considerations
Accuracy Limitations – desktop valuations may not reflect true market value.
LTV Restrictions – some lenders reduce leverage for complex assets.
Not Suitable for All Properties – unique buildings may still require inspection.
Exit Strategy Essential – refinance or sale plan must be clear.
Potentially Higher Rates – some lenders price in the extra risk.
Costs of Commercial No Valuation Bridging
Rates: From 0.65% per month
Arrangement Fees: Around 2%
Valuation Fees: Often waived or minimal
Legal Fees: Standard borrower & lender costs
Exit Fees: Not always charged
Terms: 3–18 months
Extended Guide: When Speed is Critical
Auction Deadlines – 28-day timescales demand rapid completion.
Lender Deadlines – repay expiring loans to avoid penalty.
Repossession Prevention – raise funds quickly to protect assets.
Portfolio Deals – restructure assets efficiently without repeated valuations.
Equity Release for Opportunities – act fast on time-sensitive investments.
Investor Checklist – Preparing for No Valuation Bridging
Confirm property type is acceptable (commercial, mixed-use, etc.)
Prepare exit strategy (refinance or sale)
Provide legal documentation promptly
Ensure historic valuations or AVMs are available
Allow for slightly reduced LTV in complex cases
Factor in arrangement and legal fees
No Valuation vs Standard Commercial Bridging
The key difference between a no valuation bridging loan and a standard commercial bridging loan is the way the property is assessed. With no valuation finance, lenders rely on desktop valuations, AVMs, panel valuer data, or historic reports rather than commissioning a new full RICS Red Book valuation. This allows completion in as little as 3–7 days, compared to the 2–4 weeks typically needed when a full survey is required.
Because no valuation bridging removes the cost and delay of a survey, upfront expenses are usually lower, although maximum loan-to-value ratios may sometimes be slightly more conservative than with standard bridging. Standard bridging loans can stretch up to 80% LTV, whereas no valuation facilities often cap at around 75% depending on the lender.
In practice, no valuation bridging is best suited to straightforward, time-sensitive deals such as auctions, urgent refinancing, or portfolio equity release. Standard bridging, while slower, remains the go-to option for unusual or complex commercial properties where lenders need the reassurance of a detailed inspection.
Frequently asked questions
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A loan that doesn’t require a full physical valuation, using desktop or AVM methods.
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3–7 working days in most cases.
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Commercial, retail, industrial, offices, mixed-use, and portfolios.
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Up to 75% net LTV.
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No, provided property is straightforward and exit plan is clear.
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Yes – sale or refinance is always required.
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Sometimes slightly, to reflect less due diligence.
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Yes – many lenders accept foreign borrowers.
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Special assets may still require a full RICS survey.
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Usually £100k, higher for commercial.
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Yes – lenders are flexible if the exit is strong.
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Often yes, depending on lender.
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3–18 months typical.
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Yes – many lenders allow retained or rolled-up interest.
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Yes – lenders can secure multiple assets under one loan.
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Yes – often used alongside desktop assessments.
Glossary
AVM (Automated Valuation Model): Data-driven estimate of value.
Desktop Valuation: Assessment without full inspection.
Drive-By Valuation: Limited external inspection.
Panel Valuer: Approved valuer list used by lenders.
Exit Strategy: Repayment plan (sale or refinance).
LTV (Loan-to-Value): Loan as % of property value.
Red Book Valuation: Full RICS-compliant valuation report.
Market Insights – Growth of No Valuation Bridging
Tech-Driven Lending: Increased use of AVMs and desktop tools.
Rising Auction Activity: Demand for 28-day completions.
Portfolio Investor Growth: No valuation loans streamline multiple deals.
Competitive Lender Market: More providers entering no-valuation niche.
Future Trends: Expect wider adoption as lenders balance speed with risk.
