Commercial property finance

A longer-term loan secured on commercial property, used either to buy premises your business trades from (owner-occupied) or to buy property to let out (investment). Terms commonly run up to 25 years, and up to 30 with some lenders. Lenders typically advance up to around 75% of the value, with owner-occupiers reaching up to 80% with some challenger banks, so the deposit is usually 20% to 25% or more.

Bridging is short-term property finance, usually a few months up to around 24 months, designed for speed. Businesses use it to buy at auction, beat a chain collapse, secure a property before a sale completes, or fund a quick refurbishment. It costs more than a mortgage, often priced as a monthly rate, so it only makes sense when you have a clear exit, normally a sale or a refinance onto a longer-term loan.

Funding for building or major conversion projects, released in stages as the work progresses. Lenders look at the gross development value, the build costs and your experience. It usually covers a chunk of land cost plus most of the build, with the balance and profit realised when you sell or refinance the finished scheme.

It depends on the product and property. As a rough guide, expect to put in 20% to 25% or more for a commercial mortgage, with investment and specialist property such as hotels or care homes often needing more. Bridging is driven by the loan-to-value against the property and your exit. We will tell you what is realistic for your case before you spend time on it.

On general commercial property, mainstream lenders cap at around 70% to 80%. Higher is possible in two situations. Professional practices such as dental, veterinary, medical, accountancy and legal can reach up to 100% with specialist lenders that treat those practices as low-risk. On other property you can often get to 100% of the purchase price by adding security over another property you own, or by putting mezzanine finance on top of a senior loan. It is always case by case and subject to the lender.

Yes, and for investment and buy-to-let property many landlords now use a limited company or LLP structure. Lenders are well set up for corporate borrowers and will usually want personal guarantees from the directors. Speak to your accountant about the tax side of holding property personally versus through a company.

No. We deal with commercial and investment property finance for businesses, limited companies and LLPs. We do not arrange regulated residential mortgages or owner-occupier home loans. A regulated mortgage broker is the right place for those.

Commercial and investment property finance taken by a limited company or LLP for business purposes is generally not a regulated mortgage contract. Some property lending to individuals can be regulated. CapExpand Ltd (FRN 1060885) is an Appointed Representative of White Rose Finance Group Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 630772). For property-secured lending we work with UK limited companies and LLPs only, for business and commercial purposes.

No. We are not a lender. We introduce UK limited companies and LLPs to a panel of property finance lenders and help you compare them. The lender pays us a commission if a deal completes, never you.