Commercial Property Loan
Short and long-term finance secured against commercial and semi-commercial property. Adverse credit directors considered.
Free Consultation
Get a quick quote
Step 1 of 3: Security
No upfront fees · Business enquiries only · Min. £25,000
What is Commercial Property Loan?
A commercial property loan is finance secured against property used for business purposes ” offices, retail units, industrial and warehouse units, hotels, pubs, mixed-use buildings and more. Commercial property loans are available as short-term bridging facilities (for speed or as an interim measure) or as longer-term commercial mortgages for investment or owner-occupation. Unlike residential mortgage lending, commercial property finance is not regulated by the FCA.
- Short-term commercial bridging or long-term commercial mortgage
- Owner-occupied or investment commercial property
- Offices, retail, industrial, warehouse, hotel, pub and mixed-use
- Semi-commercial (mixed residential/commercial) accepted
- No FCA regulation ” business lending only
How Does Commercial Property Loan Work?
Property and Purpose Assessment
The lender assesses the property type, location, tenant covenant (if tenanted) or business plan (if owner-occupied), and the borrower's ability to service or repay the facility.
Valuation
A specialist commercial RICS surveyor values the property on an open market basis. For investment property, the valuation also considers the rental income and yield.
Underwriting
Unlike residential mortgages, commercial lending is individually underwritten. The lender reviews the business plan, tenant quality, lease terms, void risk and borrower profile.
Legal Work and Completion
Commercial legal work is more complex than residential ” commercial leases, planning certificates and title issues require specialist solicitors.
How is Commercial Property Loan Secured?
Commercial property loans are secured by a first legal charge over the commercial property. For owner-occupied premises, the lender also considers the business trading from the property as a secondary consideration. Lenders may also require personal guarantees from directors.
Exit Strategy
All lenders require a credible exit strategy before funds are released. Common exit routes include:
- Sale of the commercial property
- Refinance to a long-term commercial mortgage
- Sale of the business as a going concern (with property)
- Refinance at lease renewal or following rent review
Is Commercial Property Loan a Good Idea?
Advantages
- Enables acquisition or refinance of income-producing commercial assets
- Investment yields on commercial property often exceed residential
- Longer leases (5, 10, 15+ years) provide income security
- No FCA regulation ” greater flexibility for business borrowers
Considerations
- Void risk ” commercial property can be difficult to re-let
- Tenant covenant quality significantly affects lender appetite
- Commercial valuations are more complex and can be volatile
- Lender appetite varies significantly by property type and location
How to Secure Commercial Property Loan
Define the Purpose
Confirm whether the loan is for investment (income-producing) or owner-occupation. This determines the underwriting approach and lender panel.
Prepare Financial Information
For investment: provide lease schedule, rent roll and tenant covenants. For owner-occupied: 3 years' accounts and a business plan.
Submit Enquiry
Provide property address, type, current use, estimated value and purpose. We match to lenders with appetite for your specific property type.
How Much Can I Borrow?
Commercial property loan amounts are typically expressed as a percentage of the open market value (OMV). LTVs are lower than residential, reflecting the higher void and liquidity risk.
- Standard commercial investment: up to 65“70% LTV
- Semi-commercial (mixed-use): up to 70“75% LTV
- Owner-occupied commercial: up to 70% LTV
- Specialist or secondary commercial: 55“65% LTV
- Minimum loan: £100,000
- Maximum: £25m+ for strong commercial assets
Want to calculate your exact costs?
Use our free calculator to model loan amount, monthly interest and total costs.
Open Calculator →What Are the Costs?
How Quickly Can I Get a Loan?
Commercial bridging: 3“6 weeks. Long-term commercial mortgage: 6“12 weeks due to greater underwriting complexity. Specialist or secondary commercial property adds further time.
Eligibility Criteria & How to Apply
- UK-based limited company, LLP or individual investor
- Commercial, semi-commercial or mixed-use property
- Investment or owner-occupied purpose
- Minimum loan £100,000
- Director adverse credit considered by specialist lenders
- Foreign nationals and offshore structures considered
9 Example Uses of Commercial Property Loan
Retail Investment
An investor acquires a high street retail unit let to a national retailer on a 10-year FRI lease. Long-term commercial mortgage at competitive yield.
Industrial Unit
A business owner purchases the industrial unit they occupy. Owner-occupied commercial mortgage at up to 70% LTV.
Mixed-Use Building
A building with ground floor café and 3 flats above is acquired. Semi-commercial bridging completes quickly; term mortgage follows.
Office Investment
A multi-let office building in a regional city centre is acquired at a 9% yield. Commercial investment mortgage funds the purchase.
Pub / Hospitality
A freehold pub is acquired as a going concern. Specialist licensed premises lender funds the transaction.
Hotel Acquisition
A boutique hotel is acquired. Specialist hospitality lender considers trading accounts and RevPAR alongside the property value.
Director with CCJs
A director with settled CCJs needs commercial finance. A specialist lender focuses on the asset quality and tenant covenant.
Auction Purchase
A commercial property is acquired at auction. Commercial bridging completes within the 28-day deadline.
Refinance to Repay Bridge
A commercial bridge approaches maturity. A term commercial mortgage refinances and provides a lower long-term cost.
Ready to proceed?
No obligation. No upfront fees. Speak directly with a specialist.
Get a Commercial Property LoanFrequently Asked Questions
Related Products