Mortgage guide
Commercial refurbishment loans enable borrowers to add value through reconfiguration, improve rental yields, enhance tenant appeal, or create more flexible commercial layouts. For business owners, they can support operational growth by upgrading or adapting premises without needing to relocate.
Commercial refurbishment loans are a specialist form of property finance designed for business owners and investors who want to improve, reconfigure, or repurpose commercial property. They are commonly used where works go beyond cosmetic upgrades and where standard commercial mortgages or bridging loans would be restrictive or insufficient. These loans are suitable for a wide range of commercial strategies, including upgrading premises for owner occupation, increasing rental income, or repositioning an asset to improve long-term value.
Commercial refurbishment loans can support projects such as splitting a large commercial building into multiple units, modernising office space to meet current occupational standards, renovating and reconfiguring retail units, or acquiring premises that require improvement before being fully usable or lettable.
Lenders will typically fund up to 70% of the purchase price and, subject to overall project viability, up to 100% of refurbishment costs. Funding for works is usually released in stages as the project progresses, allowing borrowers to manage cash flow efficiently while lenders maintain oversight of risk.
While prior development or refurbishment experience is often preferred, it is not always mandatory. Lenders focus on the clarity of the refurbishment plan, realistic costings, professional support, and the strength of the proposed exit strategy, whether that is long-term occupation, refinance, or sale.
Commercial refurbishment loans enable borrowers to add value through reconfiguration, improve rental yields, enhance tenant appeal, or create more flexible commercial layouts. For business owners, they can support operational growth by upgrading or adapting premises without needing to relocate.
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Criteria | Detail |
|---|---|
| Max LTV | Up to 100% LTV with additional security |
| Works to be funded | Up to 100%, in arrears |
| Max LTV: further advances | 95% Residential / 85% Buy to Let |
| Minimum loan | £25,001 |
| Interest options | Interest only, capital repayment |
| Funding purposes | Conversions, extensions, light and heavy refurbishments |
| Planning notes | Full planning or permitted developments |
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Feature | Detail |
|---|---|
| Day one max LTV | 75% LTV |
| Product fee | 2% Arrangement fee |
| Rate | From 0.72% per month |
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Feature | Detail |
|---|---|
| LTV | 75% LTV |
| Product Fee | £999 Flat Product Fee |
| Rate | 3.85% |
| Fixed Term | 5 years |
A commercial mortgage is an asset-backed loan secured against commercial, semi-commercial or large-scale investment property. Lenders assess it on income sustainability and asset risk rather than personal income multiples, and pricing is set case by case, usually as a margin over Bank Rate.
Commercial lending refers to loans secured against property used for business purposes, such as offices, retail units, or industrial premises. Terms, rates, and deposits are individually assessed and typically differ from residential mortgages.
A commercial bridge is a short-term, property-backed loan used to purchase, refinance, or stabilise commercial or mixed-use property when a standard commercial mortgage is not immediately available. It is exit-driven, typically runs for 3-12 months, uses rolled-up interest, and is repaid through sale or refinance rather than ongoing affordability.
A semi-commercial mortgage is a loan on a property that combines commercial and residential parts, such as a shop with a flat above, and is also called a mixed use mortgage. Lenders assess the combined rental income, the residential proportion and the commercial tenant's lease, or the business where the owner trades from the premises, and it is usually arranged with commercial or specialist lenders. A loan to an individual or trustees is a regulated mortgage contract where at least 40% of the property, measured by floor area, is lived in by the borrower or a related person; otherwise it is usually unregulated business lending.
Yes, 90% loan-to-value commercial mortgages are possible, but only in limited sectors such as healthcare properties, pharmacies, or certain convenience stores with strong trading history. For most other commercial properties, maximum lending is typically capped at around 70% to 75% LTV.
Speak to a Mortgage Lane adviser about your circumstances and the next steps.
Let’s talk property finance
Tell us about your plans and a Mortgage Lane adviser will get in touch.
Your enquiry goes to our team, who will get in touch to discuss your next steps.
