Capital Finance Group
Commercial Property Investment
Commercial property investment finance helps you buy or refinance commercial premises that are let to tenants. Whether it is a single shop, an office building, an industrial unit or a mixed-use parade, lenders look closely at the income the property produces and the strength of the tenants.
Speak to a Property Finance SpecialistCommercial Property Investment
Every commercial investment is different, and the lease is often as important as the building. We review the property, tenancy and your wider position, then present your case to lenders that are a good fit for the asset class and income profile.
Who it suits
- Investors buying tenanted offices, retail, industrial or leisure units
- Semi-commercial purchases, such as shops with flats above
- Owners refinancing or releasing equity from commercial investments
- Pension schemes, companies, trusts and individual investors
How it works
- Lending is primarily based on rental income and lease terms, with stress testing against interest costs
- Loan-to-value levels are commonly in the region of 60% to 75%
- Terms can extend over many years, with interest-only and repayment options
- Lenders consider tenant covenant strength, lease length and break clauses
Things to consider
- Vacant or short-lease properties can be harder to fund and may need specialist lenders
- Valuations for commercial property can take longer and cost more than residential valuations
- Personal guarantees may be required, particularly for company borrowers
- The property is used as security, and early repayment charges may apply
Considering a commercial property investment? Speak to an expert about funding the purchase or refinance.
Finance is subject to status and lender criteria.
Discuss commercial property investment
Considering a commercial property investment? Speak to an expert about funding the purchase or refinance.
Speak to a Property Finance Specialist