Bridging Finance for Pubs, Gyms, Restaurants & Leisure Property
Bridging finance for leisure property - pubs, gyms, restaurants and nightclubs. Access lenders comfortable with operational complexity and trading-based valuations.
What is leisure property bridging?
Leisure bridging is short-term, property-secured finance for the acquisition or refinance of pub, gym, restaurant, nightclub and other leisure assets. These assets share a common feature: the property is largely valuable because of the operational business that runs from it, not the building itself. That makes leisure bridging a specialist niche, with appetite limited to a small number of lenders who understand trading-led valuation.
Bridging is the right tool where speed matters - distressed acquisitions, freehold pub disposals from pubco programmes, gym operator-led acquisitions, or restaurant chain unit purchases. The facility typically runs 6-18 months and exits onto a specialist leisure commercial mortgage or, where the asset is repositioned, the operator's trade sale.
When leisure bridging is the right tool
Buying a freehold pub from a pubco disposal
Pubco disposal programmes run on tight, fixed completion calendars; bridging matches the timing.
Gym operator acquiring an operational gym
Bridging funds the acquisition immediately while the operator builds up trading evidence for long-term refinance.
Restaurant owner buying their leased premises
Owner-occupier acquisition with bridge to acquire and commercial mortgage as exit.
Acquiring a closed or mothballed pub for refurbishment
Vacant or closed assets valued on vacant possession value - bridging funds the works to re-open.
Buying a nightclub or live venue at auction
Specialist asset class - few lenders engage, but those who do bridge inside 21 days.
Replacing a maturing commercial mortgage
Short-term bridge avoids forced sale pricing when the original facility approaches term.
Leisure bridging - typical lender criteria
| Loan size | £250k - £15m |
|---|---|
| LTV (operational pubs) | 55-70% |
| LTV (operational gyms) | 60-70% |
| LTV (vacant / closed) | 50-60% |
| Rates | 0.70% - 0.99% pm |
| Term | 6 - 18 months |
| Exit | Leisure commercial mortgage, trade sale, or rebridge |
Pubs: free-of-tie and freehold preferred; LTVs 55-70% depending on trading history and wet/food-led mix. Gyms: lender appetite growing with rise of operator-led fitness investment; assessed on membership revenue multiples. Restaurants: freehold or long leasehold strongly preferred; short leases rarely accepted. Trading accounts (12+ months) strongly preferred across the sector.
Why leisure operators use Doulton
Leisure is one of the narrowest bridging niches by lender count. Most commercial bridging lenders explicitly exclude leisure, and the lenders who do engage have very different appetites between sub-sectors - the strongest pub lender may not touch gyms; the strongest gym lender may not touch restaurants. Doulton's panel maps the active leisure-specific lenders against each asset class so cases are placed correctly first time.
We also engage leisure-specialist RICS valuers from the outset. Generalist commercial valuers consistently misprice leisure assets - either by ignoring the trading business or by applying inappropriate covenant assumptions. A leisure-specialist valuer values the operational business properly, which directly determines the LTV available.
Leisure bridging - eligibility at a glance
- Pub, gym, restaurant, nightclub or leisure-asset property security
- Trading accounts (12+ months) strongly preferred
- Operational or recently closed accepted; vacant for long periods harder
- Freehold or 125-year+ leasehold preferred; short leases rarely accepted
- Exit via leisure commercial mortgage, trade sale, or rebridge
- Operator covenant strength and sector experience reviewed
Case study - gym operator acquires competitor's freehold gym
£890k bridging loan - operational gym, 16 working days
The challenge
A gym operator with two existing sites identified an opportunity to acquire a competitor's freehold gym premises - operational, 3 years of trading history, but the seller required a 28-day completion. The buyer's own bank declined on the grounds that they did not lend on leisure property of that scale.
The approach
Doulton placed the case with a specialist leisure bridging lender comfortable with operational gym assets. A specialist leisure RICS valuer assessed the property on a combination of vacant possession value and trading multiple, supporting a 62% LTV at £890k. Underwriting completed inside 10 working days; valuation and legals ran in parallel.
The outcome
Bridge completed in 16 working days, inside the 28-day vendor deadline. The buyer ran the gym under their own brand for 6 months, building combined trading evidence across three sites. At month 10, Doulton arranged the exit onto a specialist leisure commercial mortgage at 60% LTV with rates well below the bridge.
Leisure Property Bridging Finance - frequently asked questions
Can I get bridging finance to buy a pub?
Yes. Pub acquisitions are one of the most common leisure bridging use cases. Specialist leisure bridging lenders fund freehold pub purchases at 55-70% LTV depending on trading history, freehold/leasehold status, and wet vs food-led trading mix. Tied pubs face stricter criteria than free-of-tie houses. Closed and vacant pubs are also bridgeable on vacant possession value, with a credible re-opening or repositioning plan required.
What LTV is available on a leisure property bridging loan?
Up to 70% LTV on operational leisure assets with strong trading evidence and freehold security; 60-65% on shorter trading histories or long leaseholds; 50-60% on vacant or recently closed assets valued on vacant possession value. Loan sizes range from £250k to £15m. Larger loans and prime trading locations attract the upper end of each range. Sub-sector matters - operational gyms and freehold pubs typically attract better LTV than restaurants or nightclubs.
Can I bridge on a gym or restaurant with short trading history?
Yes, but rates and LTV reflect the limited trading evidence. Specialist leisure lenders accept 6-12 months of accounts where the operator has prior experience in the sector and the asset itself has a stable historical performance under previous ownership. The borrower's track record, location quality, and competitive position all factor in. Bridging is often used specifically to acquire newer leisure businesses then refinance once 24 months of trading is established.
Do leisure bridging lenders require a freehold?
Strong preference but not absolute. Freeholds attract the best terms. Long leaseholds (125+ years remaining) are accepted by most specialist leisure lenders at slightly reduced LTV. Short leaseholds (under 50 years) are rarely accepted because the security has limited residual value at lease end. Where short-leasehold leisure is the deal, the lender shortlist narrows significantly and pricing reflects the security weakness.
Can I use bridging finance for a closed or mothballed pub?
Yes. Closed and mothballed pubs are routinely bridged for refurbishment and re-opening or for change-of-use to alternative leisure or residential use. Lenders value the asset on vacant possession value rather than trading income, typically at 50-60% LTV. The borrower needs a credible business plan and a defined exit window - either re-opening under a new operator, sale to a developer, or planning-led change of use to alternative leisure or residential.
What is the exit route from leisure property bridging?
Three exits are accepted. (1) Refinance onto a specialist leisure commercial mortgage once 6-12 months of trading evidence under the new operator is established - the dominant exit. (2) Trade sale of the operational business to another operator. (3) Repositioning to alternative use (residential conversion, alternative leisure use) with sale or refinance against the new asset class. Doulton models the most appropriate exit at the outset.
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Learn more →Tell us about your leisure property bridging finance requirement
Indicative terms within hours. Whole-of-market benchmarking across 130+ specialist lenders. No upfront fees on loans over £1m.