Commercial Property Finance
Commercial Property Finance
Commercial property finance covers any loan secured against non-residential property, offices, retail units, industrial premises, warehouses, hotels, care homes, leisure venues, and mixed-use buildings.
Whether you are purchasing a commercial property for your own business to operate from, investing in commercial real estate for rental income, or refinancing an existing commercial mortgage to release equity or secure better terms, the right funding structure depends on the property type, your business circumstances, and your long-term objectives.
Platinum Global Bridging Finance arranges commercial property finance from £250,000 to £150+ million across the UK and Europe. We access specialist commercial lenders, challenger banks, private banks, family offices, and institutional debt funds through our panel of 100+ lenders, matching every transaction to the most competitive terms available. Indicative terms within 24 hours from our offices in London (64 Knightsbridge, SW1X 7JF) and Manchester (Railway House, Urmston, M41 6NA). No broker fee on facilities of £500,000 or above.
Types of Commercial Property Finance
Commercial Mortgages
Long-term secured lending against commercial property, typically with terms of 3-25 years and repayment on a capital-and-interest or interest-only basis. Commercial mortgages are the core product for businesses acquiring premises and investors building commercial property portfolios. Interest rates are typically 2-5% above the Bank of England base rate, depending on the property type, LTV, tenant covenant, and the borrower’s financial strength. LTV ranges from 60-75%, with the strongest terms available at lower LTV and with strong income coverage.
There are two principal categories. Owner-occupied commercial mortgages are for businesses purchasing property to operate from: offices, workshops, factories, surgeries, restaurants, and retail premises. The lender assesses the business’s trading history, profitability, and ability to service the debt from business income. Investment commercial mortgages (commercial buy-to-let) are for investors purchasing commercial property to let to tenants. The lender assesses the rental income, tenant covenant strength, lease terms, and the property’s investment value. Rental income must typically cover 125-200% of the mortgage payment.
Commercial Investment Mortgages
Where a commercial property is purchased to let to a third-party tenant, the loan is assessed on rental income and tenant covenant quality rather than the borrower’s trading performance. Commercial investment mortgages are available for offices, retail, industrial, and specialist assets. The key underwriting metric is the debt service coverage ratio (DSCR), typically 125% to 150% of the interest payment. LTV up to 70%, with rates from 6.0% pa for well-let assets with strong tenant covenants.
Semi-Commercial and Mixed-Use Finance
Properties combining commercial and residential elements (a shop with a flat above, a pub with letting rooms, an office with converted residential upper floors) require specialist lenders who can assess blended income streams. Semi-commercial and mixed-use finance is available up to 75% LTV. Where the residential element exceeds 40% of floor area or rental value, the loan becomes regulated; below that threshold it is assessed commercially. Rates from 6.0% to 8.5% pa.
Office Finance
Commercial mortgage lending secured against office premises, available for owner-occupying businesses and investors. Office finance covers everything from small professional services suites to multi-floor city centre buildings and flexible workspace investments. Prime, EPC-compliant offices attract the most competitive terms, up to 75% LTV and rates from 5.5% pa. Secondary office assets and sub-investment-grade EPC ratings attract higher rates and lower LTVs.
Retail Property Finance
Commercial mortgage lending for shops, retail units, supermarkets, retail parks, and high-street premises. Retail property finance is available for owner-occupiers and investors. Prime retail with strong national tenant covenants on long FRI leases achieves up to 70% LTV. Secondary and tertiary retail is assessed more conservatively at 55% to 60% LTV. Rates from 6.0% to 9.0% pa depending on location, covenant, and lease profile.
Industrial and Warehouse Finance
One of the most lender-active areas of the commercial mortgage market in 2026. Industrial and warehouse finance is available for single-let units, multi-let industrial estates, trade counters, logistics hubs, and distribution centres. Strong occupier demand and low vacancy rates make industrial assets attractive to a wide lender panel. LTV up to 75%, rates from 5.5% pa for well-let assets. DSCR requirements typically sit at the lower end of the commercial range (125% to 135%), reflecting lower void risk.
Hotel and Hospitality Finance
Specialist mortgage and bridging lending for hotels, guest houses, serviced apartments, pubs with letting rooms, and other hospitality assets. Hotel and hospitality finance is assessed on operational trading performance (EBITDA, RevPAR, and occupancy history) rather than a simple rental income figure. A specialist lender panel is required. LTV up to 65% to 70%, rates from 6.5% to 9.5% pa. Minimum two to three years of trading history typically required.
Care Home Finance
One of the most specialist areas of commercial property lending, requiring lenders with genuine care sector expertise. Care home finance covers owner-operator and investment lending for residential care homes, nursing homes, dementia care facilities, and specialist care assets. Assessment is based on EBITDA, CQC rating, bed occupancy, and weekly fee rates. Good or Outstanding CQC rating preferred. LTV up to 65% to 70%, rates from 6.5% to 9.5% pa.
Commercial Property Finance London
London is the UK’s most competitive and lender-active commercial property market, with a deeper lender panel and stronger pricing than any regional market. Platinum Global Bridging Finance is headquartered at 64 Knightsbridge, London SW1X 7JF, with direct access to the London lender, legal, and advisory ecosystem. Commercial property finance London covers all asset types and borrower structures, from small owner-occupied acquisitions to large institutional investment transactions. Rates from 5.5% pa, LTV up to 75%, facilities from £150,000 to £150m+.
Commercial Bridging Loans
Short-term finance for commercial property, typically 1-24 months, used when speed is essential or the property does not yet qualify for a conventional mortgage. Commercial bridging finance is commonly used for auction purchases where completion is required within 28 days, acquiring unmortgageable commercial property for refurbishment, chain breaks where a business needs to secure new premises before selling existing ones, time-critical acquisitions where an opportunity would be lost during the standard mortgage process, and properties with issues that prevent immediate mortgage lending (short leases, vacant possession, planning uncertainty).
Commercial Term Loans
Commercial term finance provides medium to long-term lending with fixed repayment schedules. Unlike a revolving credit facility, a term loan has a defined drawdown, repayment profile, and maturity date. Term loans are used for property acquisition, business expansion, capital expenditure, and refinancing.
Commercial Auction Finance
Commercial auction finance provides the speed to complete commercial property purchases within the 28-day auction deadline. Commercial premises such as offices, retail units, industrial units, pubs, restaurants, and mixed-use buildings regularly appear at UK property auctions at prices significantly below private treaty values.
Commercial Development Finance
For ground-up construction, major refurbishment, or conversion of commercial property, development finance provides staged drawdowns against the construction programme. Our commercial development finance page covers funding for new-build offices, industrial units, retail premises, hotels, care homes, and mixed-use schemes.
Exit Finance
Commercial exit finance replaces a short-term bridging loan or development facility with a longer-term product once the commercial property is stabilised, tenanted, refurbished, or otherwise ready for conventional mortgage lending.
Commercial Property Types We Finance
Offices
From single-floor serviced offices to multi-storey headquarters buildings. Office property is assessed on location, specification (Grade A vs Grade B), tenant quality, lease terms, and rental yield. The post-pandemic shift toward hybrid working has created opportunities for investors acquiring office buildings at discounted values for repositioning or conversion. We also arrange permitted development finance for office-to-residential conversions under Class MA.
Retail
High street shops, retail parks, supermarkets, convenience stores, and shopping centres. Retail property lending is assessed on tenant covenant, lease length, location, and footfall. Well-located convenience retail anchored by strong tenants attracts the most competitive terms.
Industrial and Warehouses
Factories, manufacturing facilities, distribution centres, storage units, and logistics hubs. Industrial property has been one of the strongest-performing commercial sectors in recent years, driven by e-commerce demand for logistics and last-mile delivery space.
Hotels and Hospitality
Hotels, boutique hotels, aparthotels, guest houses, pubs, restaurants, and leisure venues. Hospitality property is a specialist lending sector, assessed on trading performance (RevPAR, occupancy rates, food and beverage revenue), operator quality, and the property’s potential under professional management. See our hotel bridging loans page for short-term hospitality funding.
Care Homes and Healthcare
Residential care homes, nursing homes, specialist care facilities, medical centres, surgeries, and dental practices. Care home lending is driven by bed numbers, CQC rating, fee income, occupancy rates, and operator experience. See our care sector bridging loans page for short-term healthcare property finance.
Mixed-Use and Semi-Commercial
Properties combining commercial and residential elements, typically a shop, office, or restaurant on the ground floor with residential flats above. Properties with more than 50% residential space by floor area are often treated as residential by lenders, attracting more competitive rates.
Owner-Occupied vs Investment: Which Structure?
Owner-Occupied Commercial Mortgages
For businesses purchasing premises to trade from. The lender assesses the business’s ability to service the debt from trading income, typically requiring 2-3 years of accounts showing sustainable profitability. LTV is usually 60-75%. The business benefits from building equity in a capital asset rather than paying rent.
Investment Commercial Mortgages
For investors purchasing commercial property to let. The lender’s primary concern is the rental income: it must cover the mortgage payment by a specified multiple (typically 125-200%), known as the interest coverage ratio (ICR). The tenant’s covenant strength, lease terms, and the property’s condition and location all influence terms.
OpCo-PropCo Structures
A common structure where the trading business (OpCo) and the property (PropCo) are held in separate legal entities. The PropCo owns the property and receives rental income from the OpCo. This provides asset protection (the property is insulated from trading risks), tax efficiency (the OpCo pays market rent which is deductible, the PropCo receives rental income taxed at corporation tax rates), and flexibility (the property can be sold or refinanced independently of the business). OpCo-PropCo structures are widely used in hospitality, healthcare, and retail.
Lending Criteria
- Facilities from £250,000 to £50 million
- LTV up to 75% (some lenders to 80% with additional security)
- Terms from 1 to 25 years (term loans and mortgages) or 1-24 months (bridging)
- Interest rates from 2% above base rate (term loans) or 0.50% per month (bridging)
- Available to individuals, sole traders, partnerships, LLPs, limited companies, SPVs, trusts, and pension funds (SIPP/SSAS)
- Owner-occupied and investment properties
- All UK commercial property types considered
- Refinancing and equity release available
- Expat and international borrowers accepted
- No broker fee on facilities of £500,000 or above
SIPP and SSAS Property Purchases
Commercial property can be purchased within a Self-Invested Personal Pension (SIPP) or Small Self-Administered Scheme (SSAS), allowing pension funds to be used for property investment. The pension scheme purchases the property and receives rental income tax-free within the pension wrapper. This is commonly used by business owners purchasing their own trading premises: the business pays market rent to the pension, which is a tax-deductible expense for the business and tax-free income for the pension. Commercial mortgages are available to SIPP and SSAS schemes, typically at LTV of 50-60%.
The Commercial Property Finance Process
Step 1: Initial Discussion and Indicative Terms
We discuss your requirement, the property, the purchase price or refinance value, your business circumstances, and your objectives. We provide indicative terms within 24 hours.
Step 2: Documentation and Application
We prepare and submit a formal application supported by 2-3 years of business accounts, personal asset and liability statement, property details, rental income evidence (for investments), and AML documentation. Full requirements on our application process page.
Step 3: Valuation
The lender instructs an RICS-accredited commercial valuer to assess market value and rental value. Valuation costs range from £2,000-£10,000+ depending on complexity.
Step 4: Underwriting and Offer
The lender underwrites the application, reviewing the valuation, accounts, and borrower profile. Formal offer typically issued 4-8 weeks from application.
Step 5: Legal and Completion
Solicitors complete title investigation, searches, lease review, and legal charge documentation. Funds are drawn down on completion.
Commercial Property Finance Costs
- Interest rates: 2-5% above base rate for term loans/mortgages. 0.50-1.00% per month for bridging.
- Arrangement fees: 0.5-2% of the facility.
- Valuation fees: £2,000-£10,000+.
- Legal fees: £3,000-£15,000+.
- Survey fees: Building, environmental, and asbestos surveys may be required.
Refinancing Commercial Property
Refinancing an existing commercial mortgage is a common strategy to secure a lower interest rate, release equity from a property that has increased in value, consolidate multiple facilities, extend or restructure the repayment term, or transition from a bridging loan to long-term finance. We regularly arrange commercial refinancing for business owners and investors across the UK.
Worked Example: Industrial Unit Investment
An investor acquires a 5,000 sq ft industrial unit on a business park near the M25 for £750,000. The unit is let to an engineering company on a 10-year lease with 5-yearly rent reviews at £45,000 per annum (6% gross yield). The tenant has traded profitably for 15 years.
Commercial investment mortgage: £525,000 (70% LTV). Interest rate: 3.5% above base rate (currently 8% total). Term: 20 years, interest-only for 5 years then capital-and-interest. Monthly interest-only payment: £3,500. Rental income: £3,750 per month. ICR: 107%. Arrangement fee: 1% (£5,250). Valuation: £3,000. Legal: £5,500. Total acquisition cost: £763,750. Investor’s equity: £238,750.
After 5 years, rent reviews to £52,000 pa and property value increases to £870,000. The investor refinances at 70% LTV (£609,000), releasing £84,000 of equity for reinvestment into a second commercial unit.
Why Use a Specialist Broker
Commercial property lending is fundamentally different from residential. There are no comparison websites listing commercial mortgage rates. Every deal is individually underwritten, priced, and negotiated based on the specific property, borrower, and transaction structure. A specialist broker provides access to the full market: not just high street banks but the 100+ specialist lenders, challenger banks, private banks, and alternative funders who actively compete for commercial property lending.
The value of a broker is most apparent in complex transactions such as mixed-use properties, hospitality, care homes, multi-property portfolios, overseas borrowers, adverse credit, and SIPP/SSAS purchases. We know which lenders are actively seeking each type of commercial deal, what terms they are currently offering, and how to present your application for the strongest approval.
Commercial Property Market Context
The UK commercial property market has evolved significantly in recent years. The shift toward hybrid working has reduced demand for traditional office space in some locations but increased demand for flexible, high-quality Grade A offices. E-commerce growth has driven sustained demand for industrial and logistics space. The retail sector has undergone structural change: secondary high street retail has declined while convenience retail, retail warehousing, and prime retail have remained resilient.
For investors, these shifts create opportunities. Office buildings in secondary locations can be acquired at discounted values and repositioned or converted to residential under permitted development. Industrial units near urban centres command premium rents. Care homes benefit from demographic tailwinds. Hotels benefit from sustained leisure and business travel demand. The right commercial property finance structure enables investors to capitalise on these trends.
Frequently Asked Questions
What is the difference between a commercial mortgage and a residential mortgage?
Commercial mortgages are secured against non-residential property and assessed primarily on the property’s income-generating capability and the borrower’s business strength. They typically carry higher interest rates (2-5% above base rate vs 1-2% for residential), lower LTV (60-75% vs 75-95%), and more complex underwriting. Commercial mortgages are not regulated by the FCA in the same way as residential mortgages.
How much deposit do I need for a commercial property?
Typically 25-40% of the property value. Most lenders offer LTV of 60-75%. For stronger applications, some lenders extend to 80% LTV. Additional security can improve the LTV available.
Can I buy commercial property through my pension?
Yes, through a SIPP or SSAS. The pension scheme purchases the property and rental income is received tax-free. The property must be commercial, residential property cannot be held in a pension.
What is an OpCo-PropCo structure?
A structure where the trading business (OpCo) and the property (PropCo) are held in separate companies. The PropCo owns the property and leases it to the OpCo at market rent. This provides asset protection, tax efficiency, and flexibility.
How long does a commercial mortgage take to arrange?
4-8 weeks for straightforward cases. Complex transactions may take 8-12 weeks. Commercial bridging completes in 10-14 working days.
Can I get a commercial mortgage with adverse credit?
Yes, specialist lenders consider borrowers with historic credit issues. The property’s fundamentals and the strength of the business case are more important than personal credit history in commercial lending.
Do you arrange commercial mortgages for start-ups?
Yes, though lending criteria are tighter. Start-ups typically need a larger deposit (35-50%), a detailed business plan, and may need additional security.
Does Platinum Global charge a fee?
No broker fee on facilities of £500,000 or above.
Our Commercial Property Finance Solutions
Commercial Bridging Finance · Commercial Term Finance · Commercial Auction Finance · Commercial Exit Finance · Application Process
European Commercial Finance
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Get a Commercial Property Finance Quote
Platinum Global Bridging Finance arranges commercial property finance for businesses and investors across the UK and Europe. Whether you are purchasing offices for your business, investing in a retail parade, acquiring a hotel, funding a care home, or refinancing an existing commercial portfolio, we match your requirement to the most competitive funding available from our panel of 100+ specialist lenders. Contact us at 64 Knightsbridge, London or Railway House, Manchester for indicative terms within 24 hours.