Commercial finance
Property finance for business premises and commercial investment.
Intra helps clients explore finance for owner-occupied commercial premises, investment property, mixed-use assets and other specialist property requirements.
Property
Business & investment
Finance
Structured around the asset
Commercial property
Commercial lending starts with understanding how the property is being used.
A property occupied by the borrower's own business can be assessed differently from a commercial asset held purely as an investment.
Owner-occupied lending may place greater emphasis on the trading performance and affordability of the business.
Commercial investment lending can involve a greater focus on the property, tenant, lease, rent and long-term investment position.
Commercial finance requirements
Commercial property can serve very different purposes.
The appropriate finance depends on the property, who occupies it, the borrower's circumstances and how the asset fits into the wider transaction.
01
Owner-occupied premises
Finance for businesses purchasing or refinancing premises from which they operate.
02
Commercial investment
Funding for qualifying commercial investment property, subject to tenant, lease, property and lender criteria.
03
Mixed-use property
Finance may potentially be available for properties combining residential and commercial elements.
04
Portfolio restructuring
Property investors may review existing commercial borrowing as part of a wider refinancing or portfolio strategy.
05
Capital raising
Clients may seek to raise funds against qualifying commercial property for permitted business or investment purposes.
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Specialist assets
Some lenders consider a wider range of commercial property types where the asset, tenant and transaction fit their criteria.
Owner-occupied premises
Finance for property used by the business itself.
A commercial mortgage can potentially allow a qualifying business to purchase or refinance premises used for its own trading activities.
The lender may consider the property alongside trading performance, accounts, affordability, deposit or equity position and the wider financial circumstances of the business.
Discuss business premises
Owner occupied
The lender can consider both the strength of the property and the business using it.
Commercial investment
For investment property, the tenant and lease can become central to the case.
Commercial investment lenders may assess the asset alongside rental income, tenant profile, remaining lease term, lease structure and the investor's wider circumstances.
Different lenders can have significantly different appetites for property types, tenants and lease arrangements.
Property types
Commercial property covers a broad range of assets.
Lender appetite can vary substantially between property types, locations and uses.
Finance structures
The structure depends on how the property fits into the transaction.
Owner-occupied commercial mortgage
Longer-term property borrowing for a business purchasing or refinancing premises used for its own trading activities.
Commercial investment mortgage
Finance secured against qualifying commercial property held as an investment and occupied by a tenant.
Mixed-use finance
Finance for qualifying assets containing both commercial and residential accommodation.
Short-term commercial finance
Bridging or other specialist facilities may potentially be considered where the transaction requires a shorter-term structure.
Mixed-use property
One property can combine residential and commercial elements.
Mixed-use assets can include commercial accommodation at one level with residential accommodation elsewhere in the building.
The balance between those uses, tenancy structure, access, valuation and intended ownership can all influence which lenders may consider the property.
What lenders consider
Commercial lending combines property and financial underwriting.
Depending on the transaction, the lender may assess the asset, business, tenant, lease and wider borrowing structure together.
01
Property type
The nature, condition, location and intended use of the commercial property can materially affect lender appetite.
02
Owner occupation or investment
The lender's assessment can differ depending on whether the borrower will occupy the property or let it to a third party.
03
Business strength
For owner-occupied premises, lenders may review trading performance, affordability and the wider financial position of the business.
04
Tenant & lease
For investment property, tenant quality, lease length, rent and lease terms can form an important part of the assessment.
05
Loan size & equity
The amount borrowed relative to the property value can influence lender choice, terms and the overall structure of the facility.
06
Repayment strategy
Lenders will consider how the borrowing is expected to be serviced and, where relevant, ultimately repaid.
Commercial refinancing
Existing commercial property can form part of a wider finance review.
Clients may review an existing facility as it approaches maturity, where circumstances have changed, or as part of a broader property or business strategy.
Refinancing may potentially involve replacing existing debt, restructuring borrowing or raising additional capital, subject to the property, purpose and lender criteria.
Explore property refinancing→Ownership structure
The borrower may be an individual, partnership or company.
Commercial property transactions can involve different ownership structures, and lender criteria can vary depending on who owns the asset and who operates the underlying business.
Where companies are involved, lenders may review the company, directors, shareholders, accounts and wider group structure.
Intra provides mortgage and property finance advice. Independent tax and legal advice should be obtained before choosing or changing an ownership structure.
The Intra approach
Understand the asset, borrower and purpose before selecting the lender.
Commercial finance can involve more moving parts than a standard residential mortgage, so the structure of the case matters from the outset.
Requirement
Understand
We establish the property, business or investment purpose, borrowing requirement, ownership structure and wider circumstances.
Transaction
Assess
Your adviser considers the property, business position, tenancy where relevant, leverage and proposed repayment structure.
Lender criteria
Research
We research relevant lenders based on the property type, borrower profile, purpose and transaction structure.
Application
Apply
Once a suitable route is identified, we prepare and submit the case with the required financial and property information.
Completion
Manage
Our team supports the case through valuation, underwriting, legal work, offer and completion.
Lender access
Different lenders can view the same commercial asset very differently.
Lender appetite can vary according to property type, business sector, tenant, lease, borrower structure, leverage and purpose.
Lender availability and suitability depend on the property, business or investment circumstances, purpose and lender criteria.
Why Intra
Commercial property requires a broader view of the transaction.
Property type, business performance, tenant quality, lease structure and borrowing purpose can all influence lender choice.
01
Understand the purpose
We establish whether the property will be owner occupied, held as an investment or used as part of a wider business or property strategy.
02
Understand the asset
Property type, location, condition, value, tenancy and lease position are considered where relevant.
03
Review the borrower
Business performance, ownership structure, investment experience and wider financial position can form part of the assessment.
04
Manage the application
Our adviser and administration team support the case through valuation, underwriting, legal work and completion.
Related specialist finance
Explore related property finance.
Short-term finance
Bridging Finance
Short-term finance for qualifying property purchases, refinancing and time-sensitive transactions.
Project finance
Development Finance
Finance for qualifying development, conversion and substantial refurbishment projects.
Existing property
Property Refinancing
Review, restructure or potentially raise capital against existing property.
Frequently asked questions
Questions about commercial property finance.
These answers are general. Available finance depends on the property, business or investment circumstances and lender criteria.
01What is commercial property finance?
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What is commercial property finance?
Commercial property finance is borrowing secured against property used for business or investment purposes. It can include owner-occupied commercial mortgages, commercial investment lending, mixed-use property finance and some forms of short-term specialist borrowing.
02Can a business borrow to buy its own premises?
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Can a business borrow to buy its own premises?
Potentially. Commercial mortgages can be used by qualifying businesses to purchase or refinance premises used for their own trading activities, subject to affordability, property and lender criteria.
03Can I finance a commercial property that is already let?
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Can I finance a commercial property that is already let?
Potentially. Commercial investment lenders may consider properties occupied by tenants, with the lease, rental income, tenant profile and property all forming part of the assessment.
04Can commercial finance be used for mixed-use property?
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Can commercial finance be used for mixed-use property?
Potentially. Some lenders consider properties containing both commercial and residential elements, although lender appetite can vary depending on the balance of uses and property configuration.
05What information will a commercial lender require?
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What information will a commercial lender require?
Requirements vary, but lenders may ask for property details, accounts or business financial information, bank statements, lease information, tenancy details, ownership structure and evidence relating to the proposed deposit or equity contribution.
06Can I refinance an existing commercial property?
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Can I refinance an existing commercial property?
Potentially. Refinancing may be considered to replace existing borrowing, review the structure or raise capital, subject to lender criteria and the purpose of the funds.
07Can commercial property be bought through a company?
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Can commercial property be bought through a company?
Potentially. The appropriate ownership structure depends on the circumstances. Mortgage advice should be considered alongside independent tax and legal advice before choosing how to hold a property.
08Is commercial property finance regulated by the FCA?
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Is commercial property finance regulated by the FCA?
The regulatory position depends on the type of finance, property and circumstances of the transaction. Many forms of commercial property finance are not regulated by the Financial Conduct Authority.
Some forms of commercial and specialist property finance may not be regulated by the Financial Conduct Authority. The regulatory status of a transaction depends on the individual circumstances involved.
Your home or property may be repossessed if you do not keep up repayments on your mortgage or other loan secured upon it.
Commercial finance
Discuss your commercial property requirement with an Intra adviser.
Tell us about the property, who will occupy it, the borrowing required and what you need the finance to achieve.
enquiries@intra-pf.com