Buying Commercial Property: A Complete Finance Guide

Buying commercial property - whether to trade from or as an investment - is a significant step. Getting the finance right protects your cash flow and your returns. Here's what to know before you buy.

Owner-occupier or investment?

Lenders treat the two differently. If you'll trade from the property (owner-occupier), affordability is based on your business profits. If you'll let it out (investment), it's based on the rental income and its coverage of the mortgage. Your intended use shapes the deposit, rate and lender.

Deposit and costs

Expect to put down 25-40% of the property value. Beyond the deposit, budget for valuation fees, legal fees, Stamp Duty Land Tax, and arrangement fees. Factoring these in early avoids surprises later in the process.

The buying process

1. Agree your budget and get finance in principle.
2. Find the property and agree a price.
3. Submit a full mortgage application with accounts and projections.
4. Lender valuation and formal offer.
5. Legal work, then completion and drawdown.

Ways to fund it

• Commercial mortgage: the standard route for a longer-term hold.
• Bridging finance: to buy quickly, then refinance onto a mortgage.
• Development or refurbishment finance: if the property needs significant work first.

How we help

Lender appetite for commercial property varies by sector, property type and location. We match your purchase to the right funder and structure the deal for approval and value. At Sadi's Commercial Finance we arrange commercial mortgages and property finance across the UK.

Buying commercial property? See our commercial property finance service or speak to a specialist.