The situation
Your landlord's tired, or their tax position has changed, and the freehold is on the table. Miss it and the next landlord could double the rent — or refuse to renew. But the deposit is real money and the process is opaque compared to residential mortgages.
How we approach it
We match the deal to the right commercial lender based on sector (some are cautious on hospitality, others on light industrial), accounts strength, and the property itself. Debt service is stress-tested against retained profit, not rent — because you'll no longer be paying rent.
What that looks like in practice
- Up to 75% LTV against RICS commercial valuation
- Repayment or part interest-only over 15-25 years
- Sector-specific lenders — hospitality, retail, industrial, professional
- SIPP/SSAS pension purchase considered for tax-efficient ownership
- Bridging option if speed is critical and full commercial takes longer
Typical timeline
- Week 1Accounts, lease, property details and business plan reviewed.
- Week 2-4Lender selected, AIP issued, RICS valuation instructed.
- Week 5-10Full underwriting, legal completion — timeline reflects commercial legal complexity.
Common questions
How much deposit do I need?
Typically 25-30% of the value. For strong trading businesses buying an existing premises with a good rental history, 25% is achievable — sometimes 20% with additional security.
Can my pension buy the premises instead?
Yes — a SIPP or SSAS can purchase commercial property, rent it back to your business tax-efficiently. It's a specialist route but often the most tax-efficient answer for owner-managed businesses.
What accounts do lenders want?
Two full years of filed accounts is the norm, plus recent management accounts. Newer businesses need to bring a bigger deposit or offer additional security.
Convert rent into ownership
Send your last two years of accounts and the property details — indicative terms usually come back within 48 hours.