Owner-occupier

Buying the premises you trade from

For a profitable trading business, buying the premises usually beats renting inside 8-12 years — assuming the mortgage is structured against trading strength, not just bricks-and-mortar.

Audience: Trading businesses moving from renting to owning

Situation: Rent is a permanent cost; a mortgage builds equity — but the numbers only work with the right lender, structure and LTV.

Primary: Commercial Loans

The situation

Businesses often approach their high-street bank first and get a lukewarm response: 60% LTV, personal guarantees, short amortisation. The specialist commercial lending market is significantly deeper.

How we approach it

We match the deal to lenders that price on covenant strength and property together. Owner-occupier LTVs of 70-75% are routine with the right accounts, and 20-25 year amortisations keep monthly cost close to rent.

What that looks like in practice

Owner-occupier deals typically go higher LTV than pure investment
Two years of clean accounts is the usual entry point; one year possible
Personal guarantees minimised where the covenant is strong
SDLT structuring — sometimes the property sits in a separate SPV
VAT position on the property assessed early (opted or not)

Typical timeline

Weeks 1-2
Accounts and property pack reviewed, lenders shortlisted.
Weeks 3-6
Valuation, legal enquiries, credit committee.
Weeks 6-10
Offer, drawdown, completion.

Common questions

Should the property sit in the trading company or a separate SPV?

Usually a separate SPV holding the property and leasing to the trading company — cleaner for tax, easier on sale or refinance. Take specific tax advice.

What deposit do I actually need?

25-35% depending on covenant, sector and property. Some lenders will accept lower with additional security or a longer trading history.

Can I refurbish as part of the purchase?

Yes — either capitalise it into the mortgage where equity allows, or run a refurb bridge and refinance onto a term loan once complete.