Commercial property loans

Buying, refinancing or releasing equity from commercial property?

Finance to buy, refinance or release equity from commercial property: offices, retail, industrial and warehouse, and mixed-use buildings, whether you occupy the premises or lease them to tenants. Lenders size the loan on the income the property produces, so the leases matter as much as the building.

Talk to an adviser Interest cover calculator

How it works

ReviewWe look at the property, the leases and your plans
ModelInterest cover, loan size and structure modelled up front
ApproachYour case presented to suitable banks and non-bank lenders
NegotiateTerms, covenants and fees negotiated before you sign
MonitorAnnual reviews and refinancing planned ahead of expiry

Who it suits

Business owners buying their own premises
Investors buying tenanted buildings
Refinancing or releasing equity from a portfolio
Owners whose bank facility is up for review

What lenders look at

The leases: tenant strength and the time left on each lease
Interest cover: rental income compared with interest costs
Valuation, property type and location
A larger deposit, often 30% or more
For older buildings, the seismic rating

What to prepare

Tick them off as you go.

Copies of leases and a tenancy schedule
Valuation or agent's appraisal
Property outgoings: rates, insurance and maintenance
Financial statements for the owning entity
Building reports, including any seismic assessment

Questions to ask

What interest cover does the lender need?
How long is the loan term before review?
What covenants and reporting will apply?
What happens if a major tenant leaves?
Is an interest-only period available?

Everyone's situation is different. Lenders weigh things differently and small details change the answer. An adviser can tell you where you stand with commercial property loans and what to do next.

Talk to an adviser

Run the numbers