What commercial lenders look at
Commercial lenders usually lend a lower share of the value than residential lenders, often up to around 70% to 75%. They also look at the business's accounts or the property's rental income to check the loan can be serviced.
Worked example
A £500,000 property with no existing borrowing, at a 70% limit, could support a loan of about £350,000, meaning a deposit of £150,000.
Before you apply
Lenders also look at the business accounts and the property's rental income, and make their own decision, so treat the result as an upper limit.
How the result is worked out
The extra you could borrow is the property value multiplied by the maximum loan-to-value you enter, minus any borrowing already secured on it. Your equity is the value minus that existing borrowing.
Use the lender's own maximum loan-to-value, which varies by property type, so check the figure with the lender.
Inputs for the commercial property loan eligibility calculator
Property value
The value or purchase price of the property.
Existing borrowing secured on it
Any existing loans secured on it.
Maximum loan-to-value
The lender's maximum, often around 70% to 75% for commercial property.
CALCULATOR QUESTIONS
Commercial property loan eligibility calculator questions
How much can I borrow on a commercial property?
Often up to around 70% to 75% of its value, if the business or rent can support the repayments.
Do lenders check my business accounts?
Yes, or the rental income if it's an investment property.
How much deposit do I need?
Usually at least 25% to 30%.
Is this a guarantee?
No. The lender decides.