Commercial Investment Property Finance FAQs

• Who will you lend to?
• What type of property will you lend against?
• What is your minimum and maximum loan size?
• Are your loans for a property purchase only, or can you refinance an existing loan?
• Do you lend against freehold or leasehold commercial property?
• What is your normal repayment term?
• Do you offer variable rates or fixed rates?
• Do you arrange interest-only loans?
• Will you require a cross-collateral charge?
• What are your arrangement fees?
• What happens at the end of the repayment term?
• Are there any early repayment penalties?
• Are you registered with (or are your loans regulated by) the Financial Services Authority (FSA) or the Consumer Credit Act (CCA)?

Who will you lend to?

We can arrange commercial investment property finance for sole traders, partnerships, LLPs, UK limited companies, offshore companies, trusts, charities, investors - including Self Invested Personal Pension Schemes - and for individuals who complete a declaration of business use or a statement of high net worth.

What type of property will you lend against?

We can offer finance for most types of commercial investment property, for example:

* Retail
* Offices
* Healthcare - surgeries, residential care homes and nursing homes
* Hotels, guest houses and holiday lets
* Caravan sites, mobile home parks and holiday parks
* Industrial - factories, warehouses, light industrial and heavy industrial units
* Garages & petrol stations
* Agricultural
* Leisure and health resorts, spas, golf courses
* Restaurants and public houses
* Mixed use - any of the above combined with residential accommodation
* Land for residential or commercial development

Note: the above list is not exhaustive; if you find a commercial property with a use which is not listed, please contact us at an early stage to see if we can finance it for you.

What is your minimum and maximum loan size?

Our normal range would be between £500,000 and £50million, although we can be flexible for existing clients.

Are your loans for a property purchase only, or can you refinance an existing loan?

We can arrange finance to purchase a property or to refinance an existing loan. Our refinance loans also allow you to release equity to be used for any legitimate purpose.

Do you lend against freehold or leasehold commercial property?

The above terms are for freehold property or long leasehold, i.e. where the lease has over 50 years remaining ("unexpired").

For properties with shorter leases, please refer to our short term leasehold business finance section.

What is your normal repayment term?

Usually 3 - 25 years. Other terms may be possible; please contact us with your requirements.

Do you offer variable rates or fixed rates?

We can arrange commercial investment property finance with either a variable interest rate (linked to BoE base rate or LIBOR), fixed or swap rate, or capped rate; it's your choice.

Do you arrange interest-only loans?

Yes - we can arrange commercial investment property finance on either a standard capital and interest (amortising) basis, interest-only, or with a balloon payment option.

Will you require a cross-collateral charge?

This usually happens where you have other properties in your portfolio with surplus cashflow. You can offer a cross-collateral charge to provide additional security to the lender, in return for increasing the loan amount.

What are your arrangement fees?

We do not charge any up-front fees; our fee is only payable upon completion of the transaction.

Many clients do not have to pay us a fee at all. Instead, the lender charges an arrangement fee of around 1% and then pays us out of this. We will provide a full fee quotation and disclosure of any commission payable when you request a quotation.

As usual you will be responsible for valuation fee and legal fees.

What happens at the end of the repayment term?

You will be expected to repay the loan in full. If you want to renew the facility please contact us 3 months in advance of maturity.

Are there any early repayment penalties?

Variable rate loans do not normally have an early repayment charge (ERC), unless you are within an initial discount period. Fixed, swap or capped rate loans are normally subject to an ERC within the product term.

Are you registered with (or are your loans regulated by) the Financial Services Authority (FSA) or the Consumer Credit Act (CCA)?

No. Commercial investment property finance is NOT regulated by either the FSA or CCA*.

We believe in total transparency, and we have deliberately chosen not to be regulated by FSA or hold a Consumer Credit Licence, so as to avoid giving the misleading impression that our service or loans are regulated.

* The only exception is for properties which also provide residential accommodation for the borrower (or close relative/connected person) with an area greater than 40% of the total property. These are semi-commercial loans and we can put you in touch with an FSA regulated broker to arrange such finance.