The situation
BTL investors approaching first commercial often assume it's like residential BTL with a bigger property. It isn't — covenant strength dominates valuation, lease length dominates lender appetite, and vacant possession is a real risk.
How we approach it
We walk first commercial buyers through the deal properly. Right property, right tenant, right structure — and if the deal doesn't stack, we say so before you commit non-refundable costs.
What that looks like in practice
- 70-75% LTV typical for first commercial with strong tenant
- Lease strength (length, break clauses, covenant) assessed early
- VAT position (opted or not) checked at outset
- Personal guarantees limited to sensible caps
- Refinance strategy modelled at outset — commercial mortgages rarely stay put 20 years
Typical timeline
- Weeks 1-2Property, tenant and lease reviewed, deal appraisal.
- Weeks 3-6Application, valuation, credit.
- Weeks 6-10Legals, completion.
Common questions
How different is commercial from residential BTL?
Substantially — valuation is on yield not comparables, covenant strength dominates, void risk is higher. Not harder, just different.
What if the tenant leaves?
Vacant possession risk. Mitigate with lease length, tenant quality, and re-let evidence. Don't buy commercial without a plan for a void.
Personal guarantee — how much?
Usually limited to a percentage of loan (20-40%) or a capped amount. Full unlimited PGs are rare and worth pushing back on.
Send the property and lease
We'll walk through the commercial-specific risks properly before you commit.