Commercial Property Finance to Expand Your Business

Commercial Property Finance is a flexible loan solution to help businesses and investors buy, refinance, or reconfigure commercial and mixed-use properties - designed with tailored terms and eligibility to suit your individual circumstances.

• Commercial Mortgages: Tailored loans for purchasing or refinancing commercial and mixed-use real estate, usually requiring a substantial deposit or equity and sometimes additional collateral.
• Bridging Loans: Short-term finance to “bridge” the gap until long-term funding is arranged or the property is sold. Typically used for light refurbishment schemes, land acquisition and auction purchases.
• Development Finance: Often used to repurpose properties from one asset class to another i.e. old industrial buildings into office or co-working spaces or ground up construction of industrial parks or hospitality, leisure or health care facilities.

Yes, refinancing a commercial property involves replacing your existing mortgage with a new loan, often to achieve better terms, lower interest rates, or access equity. Benefits of refinancing can include improved cash flow, reduced monthly payments, and the ability to invest in property improvements or other business opportunities. However, it's important to consider potential costs such as prepayment penalties, closing fees, and the overall financial impact on your business.  

In summary, commercial property finance encompasses various loan products tailored to assist businesses in acquiring, developing, or refinancing commercial real estate. Understanding the different financing options and their implications is crucial for making informed decisions that align with your business objectives.

Mixed-use properties, sometimes known as “semi-commercial” are commonly seen along UK High Streets and surrounding areas. These typically feature a shop or commercial unit on the ground floor with self-contained flat(s) above.

Lenders often price mixed-use properties more favourably when over 50% of the space is residential. However, properties with more than 50% commercial space can still be financed - it may just come at a slightly higher premium.

A commercial mortgage is very similar to a residential mortgage where you put down an initial deposit and then repay the loan on a monthly basis plus the interest. The larger the deposit you have in place, the smaller the mortgage you'll need to borrow.

Unlike residential mortgages, which are easy to find online with comparison websites, commercial property loans work on a case-by-case basis.

There are various types to choose from, which you can explore on our property finance solutions page, or why not speak to one of our experienced team members? We'll ensure you find the best loan for your business.

An OpCo-PropCo deal (Operating Company – Property Company) is a common structure in commercial real estate.

The OpCo-PropCo structure separates your trading business from the property it occupies. The OpCo runs day-to-day operations, while the PropCo owns the premises and receives rental income.

This setup can offer greater flexibility, tax efficiency, and risk management—making it easier to attract investors or work with different lenders.

Speak to your accountant to see if this approach suits your business.

Each proposal is different, but we will normally require the following information to make an initial judgement:

Your Business

• Business name & structure (Ltd, LLP, Sole Trader, Partnership etc)
• Company registration & VAT numbers
• Director(s) / shareholder(s) details

Financials

• Last 2–3 years of accounts for your business (or the target business if you are buying another)
• Recent bank statements (3-6 months)

Property Information

• Property address & type (office, retail, industrial, mixed-use)
• Purchase price or valuation
• Tenancy agreements (if let to third parties)
• Any planned refurbishments or developments

Loan Details

• Loan required & purpose (purchase, refinance, development, equity release)
• Deposit source (if a purchase)
• Details of any existing mortgages on the proposed security

Personal Info (Key Personalities)

• Personal financial statement (assets & liabilities; income and expenditure statement)
• Schedule of additional investment/trading properties owned