--- title: "Nursery Mortgages" description: "Buying, refinancing, or expanding a day nursery? Get specialist advice on commercial mortgages and nursery premises finance from a whole-of-market broker." url: "https://mortgagelane.com/insights/nursery-mortgages" site: "Mortgage Lane" collection: "posts" date: "2026-07-09" author: "Joseph Lane" category: "Guides" reviewed: "2026-07-09" reading_time: "8 min" byline: "Joseph Lane" author_credentials: "CeMAP · FCA authorised firm" language: "en-GB" robots: "index,follow" --- # Nursery Mortgages Buying, refinancing, or expanding a day nursery? Get specialist advice on commercial mortgages and nursery premises finance from a whole-of-market broker. Buying, refinancing, or expanding a day nursery? Get specialist advice on commercial mortgages and nursery premises finance from a whole-of-market broker. [Nursery mortgage](https://mortgagelane.com/definitions?term=nursery-mortgage) Commercial A commercial mortgage secured against premises used for a nursery or childcare business. [Read the full definition of Nursery mortgage](https://mortgagelane.com/definitions?term=nursery-mortgage) ## Commercial Mortgages for Nurseries and Childcare Businesses Speak to a Mortgage Lane adviser about your options. ## In short Nursery mortgages must be structured correctly from the outset to avoid affordability issues, valuation complications, or lender declines. Lenders assess nursery finance differently depending on whether the property is being purchased as an investment or for owner-operation: borrowing is typically based on lease income for investors, or on business profitability for trading operators. Correct lender selection at the outset is essential to secure the right terms. ## Nursery Mortgages Require Correct Structuring From the Outset Nursery mortgages must be structured correctly from the start to avoid affordability issues, valuation complications, or lender declines. Lenders assess nursery finance differently depending on whether the property is being purchased as an investment or for owner-operation, with borrowing typically based on lease income for investors or business profitability for trading operators. Correct lender selection is essential. ## Specialist Support for Nursery Mortgage Applications We assist with nursery mortgages for investors and owner-operators, including first-time buyers and experienced childcare providers. Our service supports nursery purchases, refinances, and commercial property transactions, with lender selection based on lease structure, trading performance, property type, and borrowing requirements. [Speak to a specialist today and check your eligibility](https://mortgagelane.com/contact) ## Nursery Mortgage Specialists We arrange finance for nursery investors and owner-operators, including first-time buyers and experienced childcare providers, covering purchases, refinances, and commercial property transactions across the whole of the UK market. [Speak to a specialist today and check your eligibility](https://mortgagelane.com/contact) ## Commercial mortgage for a nursery A commercial mortgage for a nursery is available, whether you plan to buy the premises as a hands-off investment or to trade from yourself as an operator. The right structure depends on how the loan will be assessed, on lease income or on business performance, so it’s worth understanding both routes before you apply. ## Investment commercial mortgage for a nursery An investment commercial mortgage for a nursery lets you buy the premises and lease it to a childcare operator, without running the business yourself. Lenders assess this type of nursery mortgage primarily on the lease: rental income, tenant strength, and lease length all determine what you can borrow. A secure, well-run nursery business as your tenant strengthens the application. We search the whole of market to find the right commercial mortgage on a nursery for your investment goals, and we charge no broker fees regardless of loan size. ## Nursery mortgage for operators If you’re a nursery operator buying the premises you trade from, or expanding into new locations, a commercial mortgage for a nursery gives you long-term stability and control over your business space, and protects you from rising rents while building equity in a valuable asset. For operators, lenders assess affordability based on the profitability of the business rather than the property value alone, trading history, EBITDA, and occupancy rates all play a role in securing competitive terms. We work with mainstream and specialist lenders who understand the childcare sector, and again, we charge no broker fees. ## Finance to buy, open, or expand a nursery You can get funding to open a brand-new nursery, typically up to 75% loan-to-value, meaning a deposit of around 25% of the purchase price is usually required. The exact figure depends on your experience, the property’s value, and the strength of the profitability or lease covenant. Lenders are generally more comfortable when a nursery is already operating and profitable, because it provides a track record of income and local demand. If you’re buying an existing setting as a going concern, this can improve your chances of approval and lead to better terms. Experience in the childcare or business sector is usually expected for an operator role, though it isn’t essential, particularly if you’re buying as an investment rather than planning to run the business yourself. Where a commercial mortgage isn’t the right fit, for example, if you need to move quickly on an acquisition, or your finances don’t yet meet mainstream lending criteria, a secured business loan or short-term acquisition finance can bridge the gap ahead of a longer-term mortgage. We can talk you through which route suits your situation, including finance to buy a nursery, funding to open a nursery, and finance to expand an existing setting. If you’re just starting out or lack direct nursery management experience, we can still explore options, especially where there’s a strong location, solid projections, or a lease in place with an experienced operator. ## Buying nursery premises or a freehold nursery Buying the freehold of a nursery gives you full ownership and control of the premises, rather than relying on a landlord’s lease terms. Freehold nursery finance is usually assessed the same way as any other nursery mortgage, on lease income if you’re an investor, or on trading profitability if you’re the operator, but owning the freehold outright can also make refinancing and future expansion more straightforward. You can also get a mortgage for a leasehold nursery property, though lease length matters: most lenders require a minimum of 15-20 years remaining on the lease, and the longer the term, the better your chance of approval and favorable rates. ## What lenders look for in a nursery finance application Lenders weigh up several factors when assessing a nursery mortgage or nursery finance application: - Trading performance: for operators, this means profitability, EBITDA, and occupancy rates, backed by accounts and management information. - Lease strength: for investors, this means the length of the lease, the strength of the tenant, and the rental income it generates. - Property type and valuation basis: whether the lender is valuing the property as bricks-and-mortar or as a going concern (MV1). - Regulatory standing: an Ofsted registered nursery in good standing gives lenders more confidence in the setting’s ongoing viability. - Borrower experience: direct childcare or business management experience helps, though it isn’t always essential, particularly for investment purchases. ## Refinancing and nursery acquisition finance You can refinance an existing nursery mortgage to access better rates, release equity for expansion, or switch from a going concern (MV1) valuation to a bricks-and-mortar valuation if your circumstances have changed. Nursery acquisition finance covers the purchase of an existing nursery business and premises together, and can be structured as a commercial mortgage, a secured loan, or a blend of both, depending on how the deal is put together and how quickly you need to complete. ## Commercial mortgage calculator Choose owner occupier for a business buying or refinancing premises it trades from, assessed on adjusted net profit before tax from the latest accounts, or investment for property let to tenants, assessed on lease income. Explore your borrowing Start again Enter your figures in pounds. Your estimate updates as you go. Indicative maximum loan \- Enter your figures to see an estimate. Loan to value [Discuss your options](https://mortgagelane.com/contact) Indicative estimate only, subject to lender criteria and valuation. This is not a mortgage offer. Your property may be repossessed if you do not keep up repayments. ## Questions on Care Home Mortgages **Can I get a commercial mortgage to buy a nursery?** Yes, you can. A commercial mortgage on a nursery allows you to buy the premises either to operate the nursery yourself or as an investment property to lease to an operator. Loan terms typically depend on experience, affordability, and the strength of the business. **Can I get funding to open a brand-new nursery?** Yes, funding is possible, particularly with a solid business plan and relevant experience. While lenders prefer established settings, we work with those who will consider bricks-and-mortar value over going concern where experience is limited. **Is experience required to get a nursery mortgage?** Experience helps, especially if you’re running the nursery yourself. However, we work with lenders open to applicants without direct childcare experience particularly for investment commercial mortgages for a nursery. **How is affordability calculated for a nursery mortgage?** For owner-operators, lenders assess affordability based on profitability of the nursery business. For investors, it’s based on the lease value and rental income from the operator. **Can I refinance an existing nursery mortgage?** Yes. Refinancing can help you access better rates, release equity for expansion, or switch from an MV1 (going concern) to a bricks-and-mortar valuation if the circumstances fit. **How much can I borrow with a nursery mortgage?** Most lenders offer up to 75% LTV for a nursery mortgage, though this can vary based on your financials, the nursery’s profitability (if operating), and your experience in the sector. **What’s the difference between a nursery mortgage and a standard commercial mortgage?** A nursery mortgage is a type of commercial mortgage specifically designed for childcare properties. Lenders assess unique risks such as regulatory obligations, staff ratios, and sector trends, which differ from general commercial properties. **Can I get a mortgage for a leasehold nursery property?** Yes, but lease length is important. Most lenders require a minimum lease of 15-20 years remaining. The longer the lease, the better your chance of approval and favourable terms. **Do you charge broker fees?** No, we charge no broker fees on Commercial mortgages. You’ll get full access to our whole-of-market service with clear, professional guidance at no cost to you. **Is there a nursery mortgage calculator I can use?** Yes, our nursery mortgage calculator can provide a quick estimate of your borrowing potential based on lease value or business profits. It’s a great first step before speaking to an adviser. ## Related mortgage insights and guides - [2026](https://mortgagelane.com/insights/carehome-mortgages)Insight[Care Home Mortgages](https://mortgagelane.com/insights/carehome-mortgages)We assist care operators and property investors with commercial mortgage advice, covering the whole market.[Read more about Care Home Mortgages](https://mortgagelane.com/insights/carehome-mortgages) - [2026](https://mortgagelane.com/mortgages/commercial-mortgages)Mortgage[Commercial Mortgages](https://mortgagelane.com/mortgages/commercial-mortgages)We offer mortgage solutions for commercial properties. We can assist all commercial property types for investment and owner occupation.[Read more about Commercial Mortgages](https://mortgagelane.com/mortgages/commercial-mortgages) - [2026](https://mortgagelane.com/mortgages/bmv-mortgages)Mortgage[BMV Mortgages, Buying Below Market Value](https://mortgagelane.com/mortgages/bmv-mortgages)How lenders treat a genuine below market value purchase: family and landlord sales, Right to Buy, valuation and legal checks, bridging exits and remortgaging.[Read more about BMV Mortgages, Buying Below Market Value](https://mortgagelane.com/mortgages/bmv-mortgages) ## Talk it through with an adviser Let’s talk property finance ## Contact us **Call our team:** [+44 333 231 8206](tel:+443332318206) **Email us:** [enquiries@mortgagelane.com](mailto:enquiries@mortgagelane.com) **Opening hours:** Monday to Friday, 9am–6pm Closed Saturday and Sunday Your enquiry goes to our team, who will get in touch to discuss your next steps. Fields marked are required. First name Last name Email Phone What can we help with? Residential mortgage Remortgage Buy to let Bridging finance Commercial Something else Tell us about your enquiry I am happy to receive occasional mortgage news and rate updates. Send enquiry We use your details to respond to your enquiry and, if you opt in, send updates. See our [privacy policy](https://mortgagelane.com/privacy-policy). Published: 2026-07-09 Last reviewed: 2026-07-09 Source: https://mortgagelane.com/insights/nursery-mortgages