Long-term financing for commercial property purchases and refinancing, supporting business premises and investment property acquisitions. Our Slough-based service connects you with specialist lenders who understand the Berkshire property market.
Commercial mortgages are long-term loans secured against commercial property, used either to purchase business premises or as investment properties generating commercial rental income. Unlike residential mortgages, commercial mortgages are highly negotiable with terms, rates, and structures tailored to each specific situation and property type.
Our commercial mortgage service covers all commercial property types including offices, retail units, industrial warehouses, care homes, hotels, surgeries, and mixed-use properties. We work with businesses purchasing their own trading premises to reduce overhead costs and build equity, as well as investors acquiring commercial property for rental income and capital appreciation.
Commercial mortgages require specialist knowledge due to their complexity and the diverse range of lender criteria. Our experienced commercial finance advisors understand the nuances of different property types, business structures, and lender appetites. We can secure funding for limited companies, LLPs, partnerships, and sole traders, navigating the more detailed underwriting process that commercial lending requires.
Commercial mortgages are assessed on both the business/borrower's financial strength and the property's income-generating potential. Lenders examine business accounts, cash flow, profitability, and director/guarantor financial positions. For investment properties, rental coverage (typically 125-140% of mortgage costs) is crucial. Commercial valuations are more detailed, considering property condition, tenant quality, lease terms, and market conditions more deeply than residential valuations.
Most commercial mortgages require a minimum 25-30% deposit, meaning maximum LTVs of 70-75%. Owner-occupied businesses with strong financials might achieve 75% LTV, while investment properties or weaker businesses may be limited to 65% LTV. Certain property types (hotels, care homes, pubs) may have lower maximum LTVs of 60-65% due to their specialist nature and potentially limited resale market.
Commercial mortgages typically take longer than residential mortgages due to more detailed underwriting. From application to completion, expect 6-12 weeks for straightforward cases. Complex cases involving multiple properties, corporate structures, or specialist property types may take 3-4 months. Factors affecting timeline include valuation scheduling, legal work on commercial leases, and lender credit committee approval processes.
Yes, owner-occupied commercial mortgages are very common and often have better terms than investment commercial mortgages. Lenders view owner-occupied properties favorably as you have a vested interest in maintaining payments to protect your business premises. You'll need to demonstrate that your business is profitable and can afford the mortgage payments, typically through 2-3 years of trading accounts and management accounts.