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Leisure Property Bridging Loans

Leisure Property Bridging Loans

Leisure properties — pubs, bars, restaurants, nightclubs, gyms, cinemas, bowling alleys, and entertainment venues — are trading businesses tied to physical premises, making them one of the most specialist segments of the UK commercial lending market. Their values are driven by trading performance, location footfall, licensing conditions, and operational management rather than simple property comparables. Leisure property bridging loans provide the short-term capital to acquire, refurbish, reposition, or refinance leisure assets before arranging longer-term specialist finance.

Platinum Global Bridging Finance arranges leisure property bridging loans from our office at 64 Knightsbridge, London. We access specialist leisure and hospitality lenders across our panel, structuring facilities from £250,000 to £15 million. Indicative terms are delivered within 24 hours.

What Are Leisure Bridging Loans?

Leisure bridging loans are short-term, asset-secured facilities used to acquire, refurbish, reposition, or refinance properties used for leisure and entertainment purposes. Like hotel bridging loans and care sector bridging, these are trading business facilities where the property’s value is inseparable from the business operating within it.

The loan is secured against the leisure property and is repaid through a defined exit strategy — typically a refinance onto a specialist leisure or commercial mortgage, a sale as a going concern, or completion of a repositioning strategy. Valuations are conducted using the profits method (based on maintainable EBITDA) by RICS-accredited surveyors with specific leisure sector experience.

Leisure Bridging Lending Criteria

• Loan sizes from £250,000 to £15 million
• LTV up to 70% on trading leisure property, up to 55-60% on closed or non-trading assets
• Interest rates from 0.70% per month
• Terms from 6 to 24 months
• Interest can be rolled up — no monthly payments required
• Available to individual operators, leisure groups, limited companies, and SPVs
• Experienced operators preferred — first-time buyers need management team
• Premises licence must be transferable or obtainable
• Trading and non-trading venues considered
• No broker fee on facilities of £500,000 or above

Types of Leisure Property We Fund

Pubs and Bars

The UK pub market is one of the most active segments of leisure property. Freehold pubs — particularly those with food-led trading models, beer gardens, and residential accommodation — are in strong demand from independent operators and pub companies. A bridge provides the acquisition capital while a specialist pub mortgage is arranged. Tied houses (pubs owned by breweries with supply obligations) and free houses are both acceptable to bridging lenders.

Restaurants and Takeaways

Restaurant acquisitions — whether existing going concerns or vacant units for fit-out — require lenders comfortable with A3/A5 planning use classes and the operational risks of food service businesses. A bridge funds the purchase and any fit-out works, with the exit being a commercial mortgage once the restaurant is trading.

Gyms and Fitness Facilities

Gym acquisitions — from boutique studios to large-format fitness centres — require understanding of membership models, equipment leasing, and the competitive landscape. A bridge provides acquisition or refurbishment capital while specialist fitness sector finance is arranged.

Entertainment Venues

Bowling alleys, cinemas, trampoline parks, escape rooms, and other entertainment venues present unique valuation and lending challenges due to their specialist fit-out, limited alternative use, and dependence on discretionary consumer spending. Specialist leisure lenders assess these factors as part of the bridging application.

Nightclubs and Late-Night Venues

Late-night licensed premises present the most challenging leisure lending scenario due to licensing risk, noise complaints, and the operational complexity of late-night trading. A narrower panel of specialist lenders will consider these assets, typically at lower LTV and higher rates.

When Leisure Bridging Loans Are Used

Acquiring a Going Concern

An operator acquires a trading pub, restaurant, or leisure venue as a going concern — including the property, business, fixtures and fittings, licences, and staff. Speed is often important because trading businesses deteriorate quickly during prolonged sale processes. A bridge enables completion in 2-4 weeks rather than the 6-12 weeks typical of a commercial mortgage.

Purchasing a Closed Venue

Closed pubs, vacant restaurant units, and former leisure premises are available at discounts to their trading value. An operator acquires the property, refurbishes it, obtains or transfers the necessary licences, and reopens. The bridge funds the acquisition and fit-out, with the exit being a refinance at the trading value once the venue is operational.

Refurbishment and Repositioning

An existing operator refurbishes or repositions their venue — upgrading a traditional wet-led pub to a food-led gastro pub, expanding a gym to add new facilities, or converting a restaurant format. The bridge funds the capital expenditure during the closure or disruption period, with the exit being a refinance at the improved trading value.

Change of Use

Converting a leisure property to an alternative use — for example, converting a pub to residential (subject to planning), or converting a retail unit to a restaurant (A1 to A3). A bridge funds the acquisition and conversion works.

Worked Example: Pub Acquisition and Refurbishment

An experienced publican acquires a freehold pub with beer garden and 2-bed residential flat above in a Surrey village for £650,000. The pub is trading but underperforming — current EBITDA is £55,000 per annum against a potential of £120,000 with a food-led repositioning and garden refurbishment. Refurbishment budget: £150,000.

Bridging facility: £455,000 acquisition (70% LTV) plus £150,000 refurbishment = £605,000 total. Interest rate: 0.75% per month on drawn funds, rolled up. Term: 12 months. Total interest (average drawn balance £530,000 over 9 months): approximately £35,775. Arrangement fee at 2%: £12,100. Valuation and legal fees: £8,000. Total bridging cost: approximately £55,875. Exit: specialist pub mortgage at 65% of the post-refurbishment trading value (£1.1 million based on improved EBITDA of £120,000) = £715,000.

Costs of Leisure Bridging

Monthly interest rates for leisure bridging typically range from 0.70% to 1.0% per month, reflecting the specialist nature of trading business lending. Well-established, profitable venues with strong trading histories attract rates at the lower end; closed venues and turnaround projects attract higher rates. Arrangement fees are typically 2% of the loan. Specialist leisure valuations cost £2,000-£5,000. Legal fees: £3,000-£8,000 for trading business transactions including licence transfer.

On a £500,000 leisure bridge held for 9 months at 0.75% per month, the total interest cost would be approximately £33,750. Including arrangement fee (£10,000), valuation (£3,000), and legal costs (£5,000), the total cost would be around £51,750. This must be weighed against the potential trading profit — a well-run pub or restaurant generating £100,000+ EBITDA can repay the bridging cost within the first year of profitable operation.

Licensing Considerations

Premises licences are a critical factor in leisure property lending. The licence governs what activities can take place on the premises (sale of alcohol, provision of live or recorded music, late-night refreshment) and the hours of operation. Lenders will want to confirm that the existing premises licence covers the intended use and trading hours, that the licence is transferable to the new operator (a Designated Premises Supervisor must be nominated), that there are no outstanding licensing reviews or complaints that could result in the licence being revoked or restricted, and that the personal licence holder has the necessary qualifications. If the property does not have a premises licence (or the existing licence does not cover the intended use), a new licence application must be submitted to the local authority — a process that takes a minimum of 28 days and can take significantly longer if objections are received.

Frequently Asked Questions

Can I get a bridging loan on a closed pub?

Yes. Closed pubs are acceptable to specialist leisure lenders, though the valuation will reflect the non-trading status and the capital expenditure required to reopen. The lender will want to see a credible reopening plan and evidence of the borrower’s operational experience.

How is a leisure property valued?

Leisure properties are valued using the profits method (based on maintainable EBITDA) by a specialist RICS-accredited leisure sector valuer. Closed properties are valued on a bricks-and-mortar basis with an assessment of trading potential. Valuations typically take 2-3 weeks.

Can I convert a pub to residential use?

Pubs are classified as Sui Generis in planning terms, so permitted development rights do not apply. A full planning application is required to convert a pub to residential use. Some local authorities have Article 4 Directions specifically protecting pubs from conversion. An Asset of Community Value (ACV) listing can also delay or prevent conversion.

Can I get a bridging loan for a gym or fitness studio?

Yes. Gym and fitness studio acquisitions are a growing segment of leisure bridging. Lenders assess the membership model, equipment ownership (owned vs leased), premises lease terms, and competitive landscape. Specialist fitness sector lenders are available through our panel for both acquisition and refurbishment facilities.

Does Platinum Global charge a fee?

No broker fee on facilities of £500,000 or above.

Related Bridging Loans

• Bridging Loans — our main UK bridging loans page
• Hotel & Hospitality Bridging Loans
• Care Sector Bridging Loans
• Retail Property Bridging Loans
• Large Bridging Loans
• Commercial Bridging Loans
• London Bridging Loans