Commercial Property Finance UK

Lenders appraise every borrower on a case-by-case basis, and rates will be different for every deal. What a lender will charge you will depend on the size of your loan, the type of commercial property you are buying, how much deposit you put down, the complexity of the overall transaction and the risk for the lender. 

As with any type of lending, the key to securing the best commercial property finance rates is to present your situation in the most favourable light. What you may lack in cash flow you may make up for in assets and vice versa.

Where your property is located may also play a part in what you pay. There are now many different specialist commercial property financial companies focusing on particular types of property, specific size companies, and even specialising in regions such as London, for example. Your broker will be aware of all the lenders in the market and their inclinations, specialisations and the rates they offer for certain types of property or transactions. When Enness knows of a lender that has a preference for a commercial property purchase you are making, these providers will be Enness' first port of call.

Your business's financial track record will also influence what you pay. A successful company that has turned a YoY profit for five years and is looking to grow by moving into new premises may be able to command lower rates than businesses with a less solid track record or who have been operating for less time.

Enness brokers commercial property loans valued at several million pounds. In this part of the market, hand-brokered deals and finance structured around your business’ needs make all the difference.

What you can borrow will depend on your business and your financials, but there is an appetite in the market to lend against properties of multiple millions of pounds. Enness can source deals in the region of 80-85% LTV for the right deals.

Lenders can finance a wide range of commercial properties, including offices, retail units, warehouses, logistics hubs, industrial buildings, and mixed-use developments. Some lenders may also consider niche assets such as care homes, student accommodation, or hospitality venues. The property's location, condition, and income potential will all influence the terms offered.

Refinancing an existing commercial mortgage is a common strategy used to reduce costs, access better terms, or release equity for reinvestment. Enness works with clients looking to refinance either as part of a broader portfolio strategy or to free up capital for expansion or redevelopment. Competitive rates and flexible structures can often be achieved, particularly for high-value properties.

Commercial property loans are typically offered by private banks, specialist lenders, challenger banks, and alternative finance providers. Traditional high street banks may also lend, but often have strict criteria. Enness works across the full spectrum of the market, identifying the most suitable lender based on the property, borrower profile, and deal structure.

Commercial property can be financed through a range of lending structures, including commercial mortgages, bridging finance, development finance and private credit facilities. The most suitable option depends on the property type, funding timeline, income profile and overall investment strategy.

In practice, financing commercial property involves several key steps:

1. Define the property and funding objective
Lenders will assess whether the property is owner-occupied or investment-led, along with its income potential, tenant profile and intended use.

2. Determine your deposit or available equity
Most commercial property finance requires a deposit of 25-40%, although higher leverage may be achieved by introducing additional assets or security.

3. Select the appropriate funding structure
Long-term commercial mortgages are typically used for stabilised assets, while bridging or development finance may be more suitable for time-sensitive or transitional transactions.

4. Structure the loan around your wider position
This may involve aligning borrowing with income streams, using cross-collateralisation, or leveraging an existing property portfolio to optimise loan-to-value and liquidity.

5. Complete valuation and lender underwriting
The lender will assess the property, borrower profile and exit strategy before issuing terms and progressing to completion.

For more complex or high-value transactions, the way the finance is structured is often as important as the rate itself, particularly where multiple assets, jurisdictions or income sources are involved.

For high-value or complex transactions, structuring commercial property finance is often more important than the headline rate. Rather than relying on a single facility, finance can be tailored to reflect the borrower’s wider asset base, income profile and long-term objectives.

This may involve combining multiple assets to increase borrowing capacity, aligning debt with rental or business income, or introducing additional security to optimise loan-to-value. For portfolio investors, lenders may assess the overall performance of multiple properties rather than a single asset in isolation.

Structuring can also determine how efficiently capital is deployed. For example, borrowers may choose to retain liquidity by leveraging existing property or investment assets, rather than introducing additional cash. In other cases, short-term and long-term facilities may be layered together to support acquisition, stabilisation and refinance.

In more complex scenarios, particularly involving international assets or non-standard income, access to the right lenders becomes critical. Enness works across a global panel of private banks, specialist lenders and alternative providers to structure facilities that reflect the full financial position of the borrower, rather than a single metric.

Commercial property finance can be structured through several different types of lending, depending on the asset, timeline and investment strategy. Each option serves a distinct purpose within a transaction.

Commercial Mortgages
Long-term financing is typically used for stabilised, income-generating properties. These facilities are often structured over 5 to 25 years, with pricing and leverage linked to rental income, tenant strength and asset quality.

Bridging Finance
Short-term funding is designed for time-sensitive transactions, such as acquisitions, refurbishments or refinancing ahead of a longer-term exit. Terms usually range from a few months to 24 months, with greater flexibility around underwriting and speed of execution.

Development Finance
Used to fund ground-up construction or significant redevelopment projects. Facilities are typically drawn in stages, aligned with build progress, and repaid through sale or refinance upon completion.

Private Credit and Alternative Lending
Flexible funding solutions for more complex or high-value transactions, particularly where traditional lenders may not be suitable. These facilities can be structured around bespoke requirements, including non-standard income, international assets or portfolio-backed lending.

Commercial property finance in London often involves larger loan sizes, higher-value assets and more complex lending criteria than in other regions. Lenders will assess factors such as location, tenant demand, lease structure and asset quality, particularly in prime and central areas.

Due to the scale and diversity of the London market, finance is frequently structured across multiple lenders or assets to optimise leverage and flexibility. Enness arranges commercial property finance in London through a global panel of private banks, specialist lenders and alternative providers, supporting acquisitions, refinances and development-led transactions.