What loan‑to‑value (LTV) can I expect for a UK commercial remortgage or refinance?
Summary (quick answer)
If you’re refinancing a UK commercial property you can generally expect mainstream lenders to offer around 50–70% LTV, with the exact figure driven by property type, lease and tenant strength, valuation method and your business credit profile. Prime investment assets with long leases and strong covenants can sometimes reach 75% or slightly higher; riskier or complex assets typically sit at 40–55%. Ready to see what you might qualify for? Get a Free Eligibility Check.
Table of contents
– Quick answer: At a glance — jump to #quick-answer
– How lenders set LTV for commercial remortgages — jump to #how-lenders-set-ltv
– Typical LTV ranges by property type (table) — jump to #ltv-by-property
– Borrower profile examples: how your situation affects LTV — jump to #borrower-examples
– Costs, terms and trade-offs when choosing an LTV — jump to #costs-terms
– How UK Business Loans helps you find the best LTV and lender — jump to #how-we-help
– Practical checklist before you enquire — jump to #checklist
– FAQs: the five common LTV questions answered — jump to #faqs
– Final notes & next steps — jump to #final-cta
– Typical mainstream LTV: 50–70% for many commercial remortgages.
– Strong investment assets (long leases, prime tenants): commonly 60–75% and sometimes higher in competitive markets.
– Owner‑occupied, short leases, seasonal businesses or specialist property types: often 40–55%.
– Development, conversion or refurbishment finance: usually lower LTV and staged drawdowns based on costs or completed value.
– Minimum deal size and scope: we help with commercial loans from around £10,000 upward.
If you want a tailored estimate for your asset and business profile, get a Free Eligibility Check and we’ll match you to lenders and brokers who specialise in your property type. (Submitting an enquiry is just a fact-finding step — it’s not a loan application and it won’t affect your credit score.)
Lenders do not use a single LTV rule — underwriting is multifactorial. Key drivers include:
– Valuation and valuation basis: an open‑market, RICS valuation typically produces the primary value. Some lenders apply discounts for redevelopment or refurbishment risk.
– Property type and market demand: logistics and prime retail/office locations attract higher LTVs than specialised leisure or low‑demand high street units.
– Lease length and tenant covenant: investment properties with long unexpired leases and blue‑chip tenants command better LTVs.
– Location and liquidity: properties in stronger markets are easier to re‑sell and therefore attract higher LTV.
– Borrower and business profile: company accounts, profitability, trading history, and any existing debt or defaults affect appetite.
– Purpose of refinance: equity release, consolidation, acquisitions or funding capex each have different lender appetites.
– Existing security and encumbrances: additional charges, personal guarantees or historic covenants may reduce available LTV.
Bottom line: LTV is an indicator of lender risk appetite against the asset and borrower. Tell us a few details and we’ll match you to lenders likely to offer the best LTV for your circumstance — Get Quote Now.
| Property type | Typical mainstream LTV range | Notes |
|---|---|---|
| Investment (long leases, strong covenant) | 60–75% | Best LTV for long unexpired leases and strong tenants. |
| Industrial / Logistics | 60–70% | High demand assets often secure stronger LTVs. |
| Offices | 50–65% | Post‑COVID demand variation — central locations do better. |
| Retail (prime) | 50–65% | Prime high street better; secondary retail often lower. |
| Retail (secondary / shopping centres) | 40–60% | Declining footfall areas lower LTV. |
| Hotels, pubs, leisure | 40–60% | Operating risk and seasonality reduce LTV. |
| Mixed‑use / complex | 40–60% | Valuation complexity tends to limit LTV. |
| Development / conversion | Varies — often lower | Staged facility or finance on costs; specialist lenders apply. |
These ranges are indicative only — individual lender criteria and specialty products will vary. If you want an immediate, realistic range for your asset, complete our short form for a Free Eligibility Check and we’ll match you with lenders who specialise in your property type. (Get Quote Now)
– Example 1 — Established property investor: company with audited accounts, a multi‑let industrial unit let on a 20‑year lease to a strong covenant — likely LTV: up to 75% with the right lender. Takeaway: strong leases and accounts push LTV up.
– Example 2 — Owner-occupier SME: short lease, modest trading history and limited security — likely LTV: 45–55% or lower; some lenders may require additional security or a smaller advance. Takeaway: owner-occupiers often see lower LTV than investment properties.
– Example 3 — Specialist hospitality business: seasonal cashflow, short/variable leases — likely LTV: 40–55% and may require specialist lenders. Takeaway: operational risk and volatility reduce mainstream lender appetite.
– Example 4 — Refurbishment or conversion: developer with planning consent — funding often arranged as staged facilities against costs or phased values, not a single high LTV slab. Takeaway: expect bespoke terms rather than straight LTV comparisons.
Each case is unique. For an asset‑specific view, Get a Free Eligibility Check and we’ll connect you to lenders and brokers who can give a realistic LTV estimate quickly.
Higher LTV can free equity but usually comes with trade-offs:
– Interest rates and margin: higher LTV commonly attracts higher rates or lender margins.
– Fees and arrangement charges: arrangement, valuation and legal fees often increase with complexity and LTV.
– Covenants and security: higher advances may require stricter covenants or personal guarantees.
– Stress testing and DSCR: investment mortgage offers are often subject to interest coverage tests (DSCR) and may cap LTV if rental income is tight.
– Exit planning: if you borrow close to a lender’s max LTV, you may face refinancing constraints later.
Our Business Finance Matching Process
Step 1
Complete Your Details
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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.
Complete Our 1-Minute Enquiry Form Now – Get a No-Obligation Quote
Ways to improve acceptable LTV:
– Strengthen the lease (longer unexpired term) or secure a stronger tenant covenant.
– Provide additional security or a guarantor.
– Reduce the requested loan amount or stage the refinancing.
– Use specialist brokers who know which lenders will favour your type of asset.
Compare offers before you commit — we can match you to multiple lenders to weigh trade-offs quickly. Get Quote Now.
We do not lend. We make the search simple by matching businesses with lenders and brokers who specialise in commercial remortgages and refinances. Our process is:
1. Complete a short enquiry (it takes minutes).
2. We match your case to lenders/brokers in our panel who handle your property type and loan size (from ~£10,000 upwards).
3. You receive contact and indicative offers — then you decide whether to proceed.
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.
Why use us?
– Speed: fewer forms, faster matches to the right lender panel.
– Relevance: we route your enquiry to specialists in logistics, retail, offices, hospitality, development and more.
– No obligation: completing the enquiry is for matching only — it’s not a loan application and it won’t affect your credit file.
Want a quick tailored estimate? Start with a Free Eligibility Check and we’ll match you to the right contacts. Get Quote Now.
Note: For detailed product terms, lenders will complete their own credit and valuation checks once you choose to proceed.
Prepare these documents to speed up matching and give lenders a clearer view of likely LTV:
– Latest mortgage/mortgage deed details and any existing charges
– Recent RICS valuation or survey (if available)
– Lease(s) and tenancy agreements (term, rent, break clauses)
– Management accounts or company accounts for the last 2–3 years (or latest management accounts)
– Evidence of any planned works, planning consents or development budgets
– Details of any current defaults, disputes or CCJs
– Clear statement of refinance purpose (equity release, consolidation, purchase, capex)
When you’re ready, complete our short form to get matched and see indicative LTV ranges for your case. Get a Free Eligibility Check.
Q: What LTV can I expect for a UK commercial remortgage?
A: Indicative mainstream bands are 50–70% LTV. Exact offers depend on property type, lease and tenant strength, location and your business profile.
Q: What loan‑to‑value might I get on a UK commercial mortgage refinance?
A: Prime investment properties can reach 60–75% LTV; owner‑occupied or higher risk assets commonly see 40–55%.
Complete Our 1-Minute Enquiry Form Now – Get a No-Obligation Quote
Q: What LTV should I expect when refinancing a UK commercial mortgage?
A: Expect lenders to combine asset value, lease lengths and your financials to set LTV — see the property table above for typical ranges.
Q: What loan‑to‑value ratio could I anticipate on a UK commercial remortgage?
A: For many mainstream lenders anticipate 50–70% LTV; specialist or development finance follows different models.
Q: What LTV might be available when refinancing a commercial mortgage in the UK?
A: Availability varies by lender and sector — the best route is a quick, tailored eligibility check so we can match you to lenders likely to offer your target LTV.
(Answers are indicative. For a personalised view, Get Quote Now.)
Figures and ranges on this page are indicative and reflect typical lender behaviour; market conditions and individual underwriting policies change. If you want a quick, tailored assessment of likely LTV for your commercial remortgage, complete our short enquiry — it’s free, confidential and not a loan application.
Get a Free Eligibility Check — tell us about your property in minutes: https://ukbusinessloans.co/get-quote/
Additional resource
If you want more background on refinance options and lender approaches, see our refinance loans hub at /refinance-loans or the detailed lender guidance here: https://ukbusinessloans.co/loan/refinance/ (information on refinance solutions and next steps).
Written by: UK Business Loans content team — Last updated: 1 November 2025
Disclosure: UK Business Loans is an introducer. We do not lend or provide regulated financial advice. Submitting an enquiry is free, non‑binding and used to match you with lenders or brokers who may contact you to discuss options. Any offers are subject to lenders’ full terms and credit assessment.
1. What loan‑to‑value (LTV) can I expect for a UK commercial remortgage or refinance?
Mainstream lenders typically offer around 50–70% LTV for commercial remortgages, with prime investment assets sometimes reaching 75%+ and higher‑risk assets often 40–55%.
2. How does property type affect the LTV available on a commercial refinance?
Property type is key—industrial/logistics and long‑let investment assets usually secure higher LTVs (60–75%), while specialist, secondary retail, hospitality or mixed‑use assets typically attract lower LTVs (40–60%).
3. Which lender criteria have the biggest impact on my commercial LTV?
Lenders price LTV against the RICS valuation and valuation basis, lease length and tenant covenant, location and market liquidity, borrower accounts/credit history, and any existing charges or encumbrances.
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.
4. Can I get the same LTV for development or refurbishment finance as for a straight remortgage?
No—development and refurbishment finance usually provide lower LTVs and staged drawdowns based on costs or completed value, often via specialist lenders.
5. What can I do to improve the LTV a lender will offer on my commercial property?
You can improve LTV by strengthening lease length or tenant covenant, adding security or guarantors, reducing the requested advance, or using a specialist broker to access lenders who favour your asset type.
6. Will completing a Free Eligibility Check with UK Business Loans affect my credit score?
No—submitting an enquiry for a Free Eligibility Check is not a loan application and will not affect your credit file.
7. What documents should I prepare to speed up a commercial remortgage enquiry?
Prepare a recent RICS valuation or survey, lease(s) and tenancy agreements, mortgage deed and existing charge details, 2–3 years’ company or management accounts, and evidence of planned works or disputes.
8. How long does it take to be matched to lenders and receive indicative offers?
UK Business Loans typically matches your case to suitable lenders/brokers within hours, with initial contact and indicative offers often arriving the same day or within a few days.
9. What are the trade‑offs and costs of taking a higher LTV on a commercial mortgage?
Higher LTVs usually mean higher interest margins, arrangement and valuation fees, stricter covenants or personal guarantees, and tighter DSCR/stress testing, so compare offers carefully.
10. Are there minimum loan sizes or specialist lenders for different commercial refinance needs?
Yes—UK Business Loans handles commercial loan enquiries from around £10,000 upwards and can route you to specialist lenders for sectors like hotels, conversions, owner‑occupied or development finance.