Are depots and warehouses eligible for commercial mortgages or bridging loans?
UK Business Loans is an introducer — not a lender or regulated financial adviser. We connect UK businesses with lenders and brokers. This page is for information only and not financial advice. Terms, lending criteria and interest rates vary by lender.
Depots and warehouses are commonly funded in the UK. Whether you can get a commercial mortgage or a bridging loan depends on the property type, planning use, lease or tenancy, valuation and your business finances. Read on for lender criteria, typical terms, practical tips and examples — plus how to get a free eligibility match with specialist lenders and brokers.
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Short answer: Yes — often, but it depends
Depots and warehouses are routinely financed by commercial mortgage lenders and by bridging lenders. Which product is appropriate depends on your objective:
- Commercial mortgage — typically for longer-term purchase or refinance of freehold or long leasehold industrial property. Lower cost than bridging, but lenders require stronger rental income or covenant and more documentation.
- Bridging loan — short-term, fast finance for urgent purchases, auction wins, refurbishment or to bridge until longer-term refinancing. Faster and more flexible, but higher cost and an explicit exit strategy is essential.
What lenders look for: depots & warehouses
Both commercial mortgage and bridging lenders will assess the property and borrower. Below are the common underwriting checks and why they matter.
Property type & condition
Lenders categorise depots and warehouses by use: distribution hubs, multi-user estates, cold-storage, trade counters, or specialist logistics (e.g., hazardous goods). Standard industrial/storage units are most straightforward. Specialist uses (refrigeration, chemical storage, heavy manufacturing) may need specialist valuers or be excluded by some lenders.
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Location & access
Good transport links, secure yards and multiple loading bays increase value. Rural warehouses may attract fewer lenders or lower valuations depending on demand.
Tenancy & income
Commercial mortgage lenders favour stable, income-producing assets—long leases with strong tenants and indexed rent reviews help. Bridging lenders may accept vacant or owner-occupied property if a credible short-term exit is provided (refinance, letting or sale).
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
Planning & permitted use
Check the planning use class and any restrictive covenants. Change-of-use or conversion projects require evidence that planning is achievable — this affects valuation and eligibility.
Value & security
Lenders rely on professional valuations. Condition, obsolescence (e.g., low eaves height, poor floor loading) and specialist fit-out (racking, refrigeration) can lower market or agreed value.
Borrower profile
Lenders assess the company’s accounts, cashflows, trading history and director experience. Strong borrower covenants and clear business plans make offers more likely and improve terms.
- Title (freehold/leasehold) details and unexpired lease length
- Latest accounts and management accounts
- Tenancy agreements / rent roll
- Two independent valuations or broker valuation
- Evidence of planning permission / permitted use
- EPC, asbestos survey (if applicable) and property condition report
Commercial mortgages for depots & warehouses
Commercial mortgages are the typical route for buyers and long-term investors. They are structured for repayment over multiple years and targeted at properties with predictable income or an owner-occupier business with clear affordability.
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What they cover
Mortgages can fund freehold purchases, long leasehold acquisitions, refinance existing property debts or release equity for investment or expansion.
Typical LTVs and terms
Loan‑to‑Value (LTV) ranges depend on property type and tenant strength. Typical commercial mortgage LTVs for industrial/logistics property are often 60–70% of market value, but specialist lenders or strong portfolios can sometimes go higher. Terms usually range up to 20–25 years.
Rate types & repayment
Rates can be fixed or variable. Repayment options include capital repayment or interest‑only (subject to lender approval and an acceptable exit plan). Mortgages generally require more extensive underwriting than bridging loans.
Pros & cons
- Pros: lower ongoing cost, longer term, suitable for investment and owner-occupiers.
- Cons: longer time to arrange, stricter documentation and may require tenant covenant strength or director guarantees.
Example (illustrative only): A lender might offer up to 65% LTV on a multi-let depot with secure leases, subject to valuation and three years’ accounts.
Bridging loans for depots & warehouses
Bridging loans provide rapid, short-term funding where timing or quick action is critical — for example, auction purchases, chain breaks, urgent refurbishments or short-term refinance while arranging a commercial mortgage.
Typical terms & costs
Bridges are normally 1–12 months (occasionally up to 18 months). Interest rates and fees are higher than mortgages; arrangement fees, valuation and legal fees are common. Interest may be paid monthly or rolled up into the loan.
LTV & security
Typical bridging LTVs for commercial property are often 60–75% of market or agreed value, depending on condition and the strength of the exit route. Lenders take a first charge on the property and require clear security documentation.
Exit strategies lenders want to see
- Refinance to a commercial mortgage (evidence of lender appetite helps)
- Sale within term
- Letting to a tenant with a sub-tenancy plan or evidence of pre-let negotiations
Risks
Bridging is useful for speed but expensive if the exit fails or is delayed. Interest roll-up can increase the loan amount; if property values fall, an exit may not cover the bridge.
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Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
Case studies — real-life examples
Example 1: Owner‑occupied depot refinance
A regional transport company owned a freehold depot and needed capital to buy adjoining land for extra parking. With three years of accounts and stable cashflow, a commercial mortgage at 65% LTV was arranged to refinance the existing debt and purchase the yard. Outcome: longer-term lower cost finance and room to grow.
Outcome: 20‑year mortgage, lower monthly cost than previous short-term facilities.
Example 2: Auction purchase of a logistics hub
An investor bought a small distribution unit at auction requiring completion within 28 days. A bridging loan provided fast completion money at 70% agreed value, with a planned refinance to a commercial mortgage after re-letting the unit. Outcome: quick purchase, short-term cost accepted in return for securing the asset.
Outcome: Bridge arranged quickly; refinanced to mortgage after tenant agreed a 5‑year lease.
How to improve eligibility & your chance of a good quote
Preparing before you apply speeds decisions and improves pricing. Practical steps:
- Gather recent accounts, management accounts and bank statements.
- Provide clear title documents and details of any existing charges.
- Secure or extend leases where possible — longer unexpired lease terms help valuations.
- Prepare a realistic cashflow and business plan showing stress-tested affordability.
- Resolve planning issues or obtain pre-application advice for change-of-use projects.
- For bridging: produce a documented exit plan (mortgage offer in principle, sales agent instructions or letting evidence).
Need sector-specific lenders? See our specialist page on logistics business loans to learn more about providers that focus on depots and warehouses.
Costs, fees & risks to expect
Typical costs you should budget for:
- Interest (higher for bridges)
- Arrangement & exit fees
- Valuation and surveyor fees
- Legal fees
- Broker fees (if applicable)
- Potential early repayment penalties
Key risks: over‑optimistic exit plans for bridging, underestimating refurbishment costs, and valuation shortfalls on refinance. Always ensure you have contingency funds and realistic timelines.
Costs and risks depend on lender and circumstances. This page does not constitute personal financial advice.
How UK Business Loans helps
We don’t lend — we match you to lenders and brokers who specialise in commercial property and logistics. Our process is quick and designed to reduce wasted time:
- You complete a short, no‑obligation enquiry at our secure forms page.
- We match your requirements to specialist lenders and brokers on our panel.
- A broker or lender contacts you to request documents and deliver quotes.
- You compare options and proceed with the partner that suits your business.
We commonly help businesses access loans and facilities from £10,000 upwards. If you want tailored introductions to lenders who understand depots, multi‑user estates or specialist logistics property, start with a Free Eligibility Check — it’s quick and carries no obligation.
Frequently asked questions
Can I get a mortgage on a cold storage warehouse?
Yes — many lenders will finance cold storage but may require specialist valuation and maintenance records for refrigeration equipment. Tenant covenant and income stability remain important.
Will lenders lend on a vacant warehouse?
Some bridging lenders will fund vacant units short-term. Commercial mortgage lenders usually prefer income-producing assets. A clear exit plan (let/ refinance/ sale) helps either route.
How long does a bridging loan take?
Bridging loans can complete in days to a few weeks depending on legal work and valuation. Preparing documents and a credible exit speeds the process.
What LTV can I expect for a multi-let logistics estate?
Typical mortgage LTVs for logistics assets are 60–70% depending on tenant strength and lease lengths. Specialist lenders may offer higher LTVs for strong portfolios.
Do commercial mortgage applications affect business credit?
Some initial enquiries may be soft searches; lenders or brokers may perform credit checks later. Submitting our enquiry does not affect your credit score.
How quickly will UK Business Loans connect me with lenders?
After you submit the short enquiry we usually match you the same day. A broker or lender may contact you within hours during business times.
Ready to check eligibility?
If you’re considering a purchase, refinance or short-term bridge for a depot or warehouse, start with a free, no-obligation enquiry. We’ll match you with lenders and brokers who understand logistics property and can provide suitable quotes.
Get Quote Now — Free Eligibility Check
No obligation. A broker or lender may contact you after you submit your enquiry. Completing the form does not affect your credit score.
1. Can depots and warehouses get commercial mortgages or bridging loans?
Yes — depots and warehouses are routinely financed by commercial mortgage and bridging lenders, though eligibility depends on property type, planning/use, tenancy, valuation and your business finances.
2. What Loan-to-Value (LTV) can I expect for a warehouse or depot?
Typical commercial mortgage LTVs for industrial/logistics property are around 60–70% of market value, while bridging loans commonly reach 60–75% depending on condition and exit strength.
3. Will lenders lend on a vacant warehouse or depot?
Some bridging lenders will fund vacant units short-term with a credible exit plan, but commercial mortgage lenders generally prefer income-producing, let properties.
4. Can I get finance for specialist warehouses like cold storage or hazardous goods depots?
Yes — many lenders will consider specialist warehouses, but expect specialist valuations, maintenance records (e.g., refrigeration) and potentially a narrower panel of willing lenders.
5. How long does a bridging loan for a depot or warehouse typically take to complete?
Bridging loans can complete in days to a few weeks depending on valuation, legal work and the strength of your documented exit strategy.
6. What documents do lenders commonly request for commercial mortgage or bridging loan applications?
Lenders usually ask for title/lease details, recent accounts and management accounts, tenancy agreements or rent roll, valuations, planning/permitted use evidence, EPC and property condition/asbestos reports.
7. How can I improve my chances of getting a good commercial mortgage or bridging quote for a logistics property?
Prepare up‑to‑date accounts and bank statements, secure or extend leases, provide clear title and planning evidence, produce a stress‑tested cashflow/business plan, and (for bridges) document a robust exit route.
8. What costs and fees should I budget for when financing a depot or warehouse?
Budget for interest (higher for bridges), arrangement and exit fees, valuation and surveyor fees, legal fees and any broker fees or early repayment charges.
9. Does submitting an enquiry with UK Business Loans affect my business credit score?
No — submitting our short enquiry is not a loan application and does not affect your credit score, although lenders or brokers may perform credit checks later if you proceed.
10. How quickly will UK Business Loans match me with lenders or brokers for a warehouse or depot loan?
After you submit the short, no‑obligation enquiry we typically match you to specialist lenders and brokers the same day, and a partner may contact you within hours during business times.