Commercial Mortgages Liverpool

Residential, commercial & industrial property

Loans up to 30 years & no trading history required

Commercial Mortgages Liverpool

Expert commercial property finance for Liverpool businesses and investors

Whether you’re buying your first business premises, expanding your property portfolio, or refinancing existing commercial property, finding the right commercial mortgage is crucial. With over 30 years of combined experience and based right here in Liverpool city centre, we specialise in arranging commercial mortgages across Merseyside and the wider North West.

We work with over 40 commercial mortgage lenders – from high street banks to specialist lenders – to find you the best terms for your specific situation. Our local knowledge of the Liverpool commercial property market, combined with our lending expertise, means we can help where others can’t.

Free consultation: 0151 314 8757

What is a Commercial Mortgage?

A commercial mortgage is a loan secured against commercial property, used to purchase or refinance:

Office buildings
Retail units and shops
Industrial units and warehouses
Hotels and guest houses
Pubs and restaurants
Mixed-use properties
Care homes and nurseries
Leisure facilities
Agricultural land and buildings
Development land
Commercial investment properties

Unlike residential mortgages, commercial mortgages are assessed primarily on:

The property’s income (rental income or business trading performance)
The property’s value and condition
Your business plan and track record
Your personal financial strength (particularly for owner-occupied properties)

Key features:

Loan amounts: £50,000 to £10 million+ (larger loans available for substantial properties)
Loan terms: 3 to 30 years (typically 15-25 years)
Interest rates: From 4.5% per annum (rates vary significantly based on circumstances)
LTV: Up to 75% (sometimes 80% for strong cases)
Arrangement fees: Typically 1-2% of loan amount
Repayment types: Capital & interest, interest-only, or hybrid

Types of Commercial Mortgages We Arrange

Owner-Occupied Commercial Mortgages

For businesses buying premises they’ll operate from:

Ideal for:

Established Liverpool businesses wanting to own rather than rent
Growing companies needing larger premises
Business owners seeking asset ownership and pension planning
Companies wanting to reduce overhead costs long-term

Liverpool examples:

Restaurant purchasing freehold on Bold Street
Accountancy firm buying office space in Commercial District
Manufacturing business acquiring industrial unit in Speke
Dental practice purchasing clinic in Woolton Village

Benefits of owner-occupation:

Build business equity rather than paying rent
Fixed monthly costs (no rent increases)
Potential capital appreciation
Pension asset for business owners
Ability to make property alterations without landlord permission

Recent example: Liverpool law firm purchased their office building in the Commercial District for £680,000. We arranged 70% LTV commercial mortgage over 20 years at 4.8%. Their monthly mortgage payment (£3,890) was less than their previous rent (£4,200), saving £310 per month while building equity.

Commercial Investment Property Mortgages

For landlords and investors buying property to let commercially:

Property types:

Office buildings let to single or multiple tenants
Retail units and shopping parades
Industrial estates
Business parks
Storage facilities
Mixed-use buildings with commercial ground floors

Liverpool hotspots for commercial investment:

Baltic Triangle: Creative and digital businesses paying strong rents
Commercial District (L2/L3): Professional services offices
Bold Street area: Independent retail commanding premium rents
Speke/Aintree: Industrial and logistics strong demand
Ten Streets: Emerging area with good value entry points

Assessment criteria: Lenders focus on:

Quality and length of tenant leases
Tenant covenant strength (creditworthiness)
Rental coverage ratio (typically need rent to be 125-145% of mortgage payment)
Your property investment experience
Property condition and location

Recent example: Investor purchased 6,000 sq ft industrial unit in Aintree for £450,000, let to established logistics company on 10-year lease at £36,000 per annum. We secured 75% LTV mortgage (£337,500) at 5.2% over 25 years. Rental coverage 145%, monthly profit £700 after mortgage payments.

Semi-Commercial Mortgages

Properties with both commercial and residential elements:

Common Liverpool scenarios:

Shop with flat above (common in Liverpool suburbs)
Pub with living accommodation
Office building with residential upper floors
Mixed-use conversions in city centre

Lending approach:

Some lenders treat as residential (better rates)
Others treat as commercial (more stringent)
We know which lenders prefer mixed-use properties

Complexity factors:

What percentage is commercial vs residential?
Are tenancies in place or owner-occupied?
Is the residential suitable for mortgage purposes?
Are the uses compatible?

Recent example: Mixed-use property on Allerton Road – retail unit (800 sq ft) with 2-bed flat above. Purchase price £285,000, let to local business at £18,000 pa plus flat let at £650 pcm. We arranged semi-commercial mortgage at 70% LTV, rate 5.6%, treating it as commercial investment.

Pub and Restaurant Mortgages

Specialist lending for hospitality businesses:

What we finance:

Traditional Liverpool pubs
Gastro pubs and dining pubs
Restaurants and cafes
Bars and nightclubs
Hotels and guest houses

Lender assessment:

Trading accounts (typically 3 years required)
Wet:dry sales ratio
Your experience in hospitality industry
Property condition and location
Potential for growth

Liverpool opportunities: Strong hospitality sector due to:

Tourism (Liverpool ONE, Waterfront, Beatles attractions)
Two major universities (40,000+ students)
Growing professional population
Cultural sector (theatres, museums, events)

Recent example: Experienced couple purchased Liverpool pub in L17 for £420,000. Property trading £380,000 per annum. We secured 65% LTV mortgage (£273,000) at 6.2% over 15 years based on trading performance and their hospitality track record.

Retail Unit Mortgages

For purchasing shops and retail premises:

Retail categories:

High street retail (Bold Street, Lord Street, County Road)
Parade shopping (neighbourhood units)
Retail parks (edge of city locations)
Shopping centres (units within covered centres)

Current retail landscape:

Independent retail performing well in Liverpool (Bold Street thriving)
National chain retail more challenging
Food retail remains strong
Experience-led retail (cafes, restaurants, services) robust

Lending considerations:

Location and footfall crucial
Tenant covenant strength (if investment property)
Lease length and terms
E-commerce impact on sector
Business rates and service charges

Recent example: Investor purchased parade of 4 retail units in L18 for £540,000, all let to established local businesses. Combined annual rent £42,000. We arranged 70% LTV mortgage at 5.4% over 20 years. Strong covenant strength and long leases secured competitive terms.

Office Mortgages

Financing office space purchases:

Liverpool office markets:

Commercial District (L2/L3): Traditional business heart
Baltic Triangle: Creative and tech sector
Knowledge Quarter: Professional services near universities
Waterfront: Modern office developments
Suburban offices: Woolton, Allerton, Crosby for local businesses

Office types:

Single let offices (one business, one mortgage)
Multi-let offices (multiple tenants, investment approach)
Serviced offices (higher income, different assessment)
Owner-occupied offices (business premises)

Post-pandemic considerations:

Flexible working impact on demand
Quality space commanding premium rents
Older offices struggling unless refurbished
Liverpool office market adapting but strong fundamentals remain

Recent example: Professional services firm purchased 3,500 sq ft office in the Commercial District for £495,000. Owner-occupied commercial mortgage at 70% LTV (£346,500), rate 5.1% over 20 years. Business turnover £840,000 per annum easily supported lending.

Industrial and Warehouse Mortgages

For manufacturing, logistics, and storage facilities:

Industrial property types:

Light industrial units
Heavy industrial/manufacturing
Warehouse and logistics
Storage and distribution centres
Trade counters and showrooms

Liverpool industrial locations:

Speke: Major industrial area, good logistics links
Aintree: Strong industrial estate presence
Kirkby: Established industrial location
Knowsley: Major industrial/logistics hub
Port area: Import/export related businesses

Strong demand drivers:

Liverpool’s port activity
E-commerce logistics requirements
Last-mile delivery demand
Manufacturing reshoring to UK
Limited supply of quality modern units

Recent example: Established distribution company purchased 12,000 sq ft warehouse in Speke for £780,000. We arranged 75% LTV mortgage (£585,000) at 5.3% over 25 years. Property let on 15-year FRI lease to national logistics company, excellent covenant.

Development Exit/Refinance Mortgages

Refinancing completed developments onto long-term finance:

Common scenarios:

Developer completed new commercial units, wants to retain as investment
Refurbished commercial property now needs long-term funding
Converted property (office to residential, etc.) ready for refinance

Timing considerations:

Some lenders require 6-12 months trading history
Newly built properties may need NHBC/warranty
Valuation based on income or comparable sales

Recent example: Developer converted warehouse in Baltic Triangle to 8,000 sq ft of creative studio spaces, let to 6 businesses at combined £64,000 per annum. We refinanced from development finance to commercial mortgage at 70% LTV (£672,000 against £960,000 valuation), rate 5.7% over 25 years.

Portfolio Landlord Commercial Mortgages

For investors with multiple commercial properties:

Criteria:

Usually defined as 4+ mortgaged properties
Can include mix of commercial and residential BTL
Some lenders specialise in portfolio landlords
Assessment often includes whole portfolio stress testing

Benefits of specialist portfolio lenders:

Understand your business model
Look at overall portfolio performance
May accept lower coverage ratios on individual properties
Faster decisions (know your track record)

Recent example: Liverpool-based property investor with 12 commercial units wanted to purchase 3 more retail units for £890,000 (£294k, £315k, £281k). We arranged portfolio lending at 70% LTV across all three at average rate 5.5%, assessing rental coverage across the acquisitions rather than individually.

How Much Can You Borrow?

Loan to Value (LTV)

Standard ranges:

Owner-occupied: 65-75% LTV (sometimes 80% for strong businesses)
Investment properties: 60-75% LTV
Specialist properties (pubs, hotels): 60-70% LTV
Development land: 50-60% LTV

Factors affecting LTV:

Property type and condition
Location and marketability
Your deposit available
Lending strength
Your experience

Rental Coverage Requirements

For investment properties, lenders typically require:

Formula: Annual rent ÷ Annual mortgage cost = Coverage ratio

Required ratios:

Standard: 125-130% coverage
Strong covenants: 125% coverage
Weaker covenants: 145% coverage
Multi-let properties: 135-145% coverage

Example calculation:

Annual rent: £40,000
Required coverage: 130%
Maximum annual mortgage cost: £40,000 ÷ 1.30 = £30,769
At 5.5% over 25 years, this supports a loan of approximately £410,000

Business Strength Assessment (Owner-Occupied)

For owner-occupied purchases, lenders assess:

Business turnover:

Typically want annual turnover at least 3-4× the loan amount
Example: £500k loan needs £1.5m – £2m turnover

Profitability:

Net profit ideally 40-50%+ of annual mortgage cost
Example: £30k mortgage cost needs £12k-£15k+ net profit

Business age:

Prefer 3+ years trading
Startups/newer businesses face challenges (but not impossible)

Personal strength:

Directors’ personal credit scores
Personal financial commitment to business
Relevant industry experience

Commercial Mortgage Interest Rates

Current Rate Environment (November 2025)

Typical ranges:

Owner-occupied: 4.5% – 7.5%
Investment properties: 5.0% – 8.5%
Specialist properties: 6.0% – 9.5%

Factors affecting your rate:

LTV level: Lower LTV = lower rate
- 60% LTV: Best rates
- 70% LTV: Standard rates
- 75%+ LTV: Premium rates
Property type: Lower risk = lower rate
- Modern office with strong tenant: Best rates
- High street retail unit: Standard rates
- Specialist property (pub, hotel): Premium rates
Lease strength (investment properties):
- 15+ year lease, strong covenant: Best rates
- 5-10 year lease: Standard rates
- Short leases or multi-let: Premium rates
Your experience:
- Experienced commercial landlord/business: Better rates
- First commercial property: Slightly higher rates
Loan size:
- Larger loans (£500k+): Better rates available
- Smaller loans (under £100k): More limited options

Fixed vs Variable Rates

Fixed rates:

Terms available: 2, 3, 5, 7, 10 years (sometimes longer)
Benefits: Certainty, budgeting, protection from rises
Considerations: Early repayment charges if you want to refinance

Variable rates:

Types: Bank base rate tracker, lender SVR, LIBOR-linked
Benefits: Flexibility, potential to benefit from rate falls
Considerations: Exposure to rate increases

Most popular: 5-year fixed rates provide good balance of certainty and competitive pricing

Commercial Mortgage Costs & Fees

Arrangement Fees

Typical: 1-2% of loan amount

Some lenders charge flat fees (£995 – £2,995)
Others percentage based
Higher risk properties = higher fees
Can sometimes be added to loan

Valuation Fees

Range: £500 – £5,000+ depending on property value and complexity

Simple retail unit: £800 – £1,500
Standard office building: £1,200 – £2,500
Large industrial unit: £2,000 – £4,000
Specialist property (hotel, pub): £2,500 – £5,000+

Paid upfront to RICS surveyor appointed by lender.

Legal Fees

Lender’s legal fees: £750 – £2,500 (you pay these) Your legal fees: £1,500 – £5,000+ depending on complexity

More complex transactions (leasehold, multiple units, restrictions) cost more.

Broker Fees

Our fee: Disclosed upfront, only payable on completion

We don’t charge upfront fees. If we can’t help you or if the deal doesn’t complete, you pay us nothing.

Typical broker fees: 1% of loan amount (varies based on complexity).

Ongoing Costs

Annual costs to budget for:

Buildings insurance: £500 – £5,000+ depending on property
Business rates: Variable (check with Liverpool City Council)
Service charges: If leasehold or part of managed estate
Maintenance and repairs: Budget 0.5-1% of property value annually
Accountancy fees: For preparing accounts for lender reviews

Example: Full Cost Breakdown

Scenario: Purchase £600,000 office building in Liverpool L2

Purchase price: £600,000
Mortgage: £420,000 (70% LTV)
Your deposit: £180,000

Upfront costs:

Arrangement fee (1.5%): £6,300
Valuation: £1,800
Lender’s legal fees: £1,500
Your legal fees: £2,800
Stamp Duty Land Tax (commercial): £25,500
Broker fee (1%): £4,200
Total upfront costs: £42,100

You need: £180,000 + £42,100 = £222,100 total

Monthly costs (assuming 5.5% over 25 years):

Mortgage payment: £2,560
Buildings insurance: £150
Service charge: £200
Maintenance reserve: £250
Total monthly: £3,160

If property let at £4,500 per month, monthly profit = £1,340 (42% margin).

Commercial Mortgage Process & Timeline

Stage 1: Initial Consultation (Day 1)

Free discussion covering:

What you’re trying to achieve
The property details
Your business/investment background
Your deposit available
Initial affordability assessment

Outcome: We’ll tell you if it’s fundable and approximately what terms to expect.

Stage 2: Agreement in Principle (Days 2-5)

We submit basic information to lenders:

Property details
Loan amount required
Your circumstances

Outcome: Formal indication from lender of willingness to lend, subject to valuation and full application.

Not all commercial deals need AIP, but useful for competitive purchases.

Stage 3: Full Application (Days 5-10)

Documentation required:

Business accounts (typically 3 years)
Personal bank statements
Business bank statements
Proof of deposit funds
Property details and tenure information
Lease details (if investment property)
Business plan (if owner-occupied)

We compile everything and submit comprehensive application.

Stage 4: Valuation (Weeks 2-3)

Lender instructs RICS surveyor to value property:

Physical inspection of property
Comparable evidence research
Income analysis (for investment properties)
Valuation report produced

Timeline: 1-2 weeks typically (faster for straightforward properties)

Stage 5: Mortgage Offer (Weeks 3-5)

Once valuation satisfactory:

Lender issues formal mortgage offer
Details all terms and conditions
You review with our guidance
Accept offer if happy to proceed

Stage 6: Legal Work (Weeks 4-8)

Solicitors handle:

Property title checks
Searches (local authority, environmental, etc.)
Lease review (if leasehold)
Tenant lease review (if investment)
Contract negotiation with seller
Mortgage deed preparation

Duration: 4-8 weeks depending on complexity

Stage 7: Completion (Weeks 6-10)

Final steps:

Exchange of contracts (you’re legally committed)
Completion day (property ownership transfers)
Mortgage funds released to your solicitor
Your solicitor completes purchase
You receive keys!

Total timeline: 6-10 weeks typical for straightforward cases

Fast-track possible: For urgent cases with motivated sellers, we’ve completed in 4 weeks.

Liverpool Commercial Property Market Insights

Office Market

Strong areas:

Commercial District (L2/L3): Remains heart of professional services
Baltic Triangle: Tech and creative businesses paying good rents
Waterfront: Modern Grade A office space

Challenges:

Older secondary offices struggling
Flexible working reducing some demand
Quality gap – best offices still in demand, poor ones vacant

Opportunity: Buying well-located older offices below replacement cost, light refurbishment, can achieve strong yields.

Retail Market

Performing well:

Independent retail (Bold Street thriving)
Convenience retail in residential areas
Food and beverage (Liverpool’s hospitality sector strong)

Challenging:

Large format retail (out of town)
National chains reducing footprints
High vacancy in some secondary locations

Opportunity: Well-located retail units with established tenants on long leases remain solid investments.

Industrial Market

Very strong:

Logistics demand driven by port and e-commerce
Limited supply of modern units
Rents rising steadily
Yields compressing (prices rising)

Liverpool advantages:

Port of Liverpool (2nd largest in UK)
Good motorway connectivity (M62, M57, M58)
Freeport status (Liverpool City Region)
Established industrial locations (Speke, Knowsley, Aintree)

Opportunity: Industrial property consistently outperforming other commercial sectors.

Investment Yields (November 2025)

Typical gross yields:

Prime office (strong covenant, long lease): 6-7%
Secondary office: 8-10%
Prime retail (Bold Street area): 5-6%
Secondary retail: 7-9%
Industrial (modern units): 6-7.5%
Industrial (older units): 8-10%
Pubs and restaurants: 8-12% (higher risk)

Compared to residential BTL (5-7% Liverpool), commercial can offer higher returns but comes with:

Longer void periods if tenant leaves
Potentially higher maintenance costs
More specialist knowledge required
Smaller pool of tenants

Why Choose Liverpool Commercial Finance?

Liverpool Specialists

We’re not a national broker with a generic Liverpool page. We’re based in Liverpool city centre, we know the Liverpool commercial property market intimately:

Which locations are strong vs weak
Typical rents for different property types
Which areas are improving
Liverpool-specific valuation considerations
Local planning issues and opportunities

This knowledge helps us position your application effectively with lenders.

30+ Years Combined Experience

Our team includes:

Ex-bank commercial lending managers who know how lenders think
Commercial property investors with personal portfolios
Business owners who understand owner-occupied mortgages

We’ve seen every type of commercial mortgage scenario and know how to structure applications for success.

40+ Commercial Lenders

We work with:

High street banks (Barclays, NatWest, HSBC, Lloyds)
Challenger banks (Metro Bank, Aldermore, Shawbrook)
Specialist commercial lenders
Private banks
Building societies
Alternative finance providers

Different lenders have different strengths:

Some prefer owner-occupied
Others specialise in investment properties
Some love industrial, others prefer offices
Certain lenders are best for portfolio landlords

We know which lender suits your specific situation.

No Upfront Fees

We don’t charge anything until your mortgage completes successfully.

Why?

We’re confident we can deliver
It aligns our interests with yours
You risk nothing by talking to us

If your deal doesn’t complete for any reason, you pay us nothing.

Face-to-Face Service

Commercial mortgages are complex and every situation is different. We meet clients:

At our Liverpool city centre office
At the property you want to purchase
At your business premises
At your accountant’s office (if helpful)

Understanding your business, your plans, and the property properly requires conversation, not just forms.

Full Process Management

From initial consultation to completion, we:

Handle all lender communications
Chase valuers and solicitors
Resolve any queries that arise
Keep you updated throughout
Attend completions if needed

You have one point of contact throughout the process.

Honest Advice

If a commercial mortgage isn’t right for you, we’ll tell you. Alternatives we might suggest:

Bridging finance (if you need speed)
Development finance (if heavy refurbishment needed)
Business loan (if more flexible funding needed)
Waiting (if timing isn’t right)

We’d rather give honest advice than proceed with unsuitable finance.

Frequently Asked Questions

Can I get a commercial mortgage for my first business premises?

Yes, if your business is established (usually 3+ years trading) and profitable. Lenders want to see:

3 years business accounts
Strong profitability
Good business credit score
Your personal financial strength
Relevant industry experience

If your business is newer, we can still help but options are more limited and terms may be less favourable.

How much deposit do I need?

Minimum: Usually 25% (75% LTV) Standard: 30-35% (65-70% LTV) Comfortable: 40%+ (60% LTV gets best rates)

The more deposit you have, the more lenders are available and the better rates you’ll access.

Can I get an interest-only commercial mortgage?

Yes, interest-only is common for commercial mortgages, particularly investment properties.

Requirements:

Credible exit strategy (how you’ll repay capital)
Usually maximum 60-70% LTV
Strong income coverage

Typical exit strategies:

Sale of property at end of term
Refinance at end of term
Sale of other assets
Business profits accumulated

Do I need a business plan?

For owner-occupied: Yes, usually required For investment properties: Not usually, unless complex

Your business plan should cover:

What your business does
How purchasing premises helps the business
Financial projections
How the mortgage will be serviced
Personal guarantees you’re giving

We can guide you on what lenders want to see.

What if the property needs refurbishment?

Light refurbishment: Most commercial lenders accept properties needing cosmetic work Heavy refurbishment: May need development finance initially, then refinance to commercial mortgage once complete Structural issues: Could prevent lending until resolved

We’ll advise whether the property condition will cause issues.

Can I buy commercial property through my limited company?

Yes, and often advantageous:

Corporation tax on rental income (19%) vs personal tax (up to 45%)
Mortgage interest fully deductible
Easier to build property portfolio
Estate planning benefits

Considerations:

Slightly higher mortgage rates (typically 0.3-0.5% more)
Director guarantees usually required
Need company accounts (new companies can be challenging)

We’ll discuss the best ownership structure for your situation.

What happens if my tenant leaves?

Lender expectations:

You have cash reserves to cover mortgage during void periods
Typically want 6 months mortgage payments in reserves
Property is in rentable condition
You’re actively seeking new tenant

Remortgaging with vacant property:

Very difficult – most lenders want tenanted properties
May need bridging finance until re-let
Then refinance to commercial mortgage

Best practice: Always have 6-12 months cash reserves for mortgage payments.

Can I get a commercial mortgage with bad credit?

Depends on severity:

Minor issues (old defaults, satisfied CCJs): Many lenders will consider if:

Explanation is reasonable
Business is strong
Property fundamentals good
Higher deposit available

Major issues (recent CCJs, bankruptcies, mortgage arrears): Limited options but some specialist lenders will consider:

Usually need 35-40% deposit
Higher interest rates (7-10%+)
Property must be strong investment

Recent county court judgements: Usually need to be satisfied before mainstream lenders will consider.

We know which lenders are flexible with credit issues.

How long does a commercial mortgage take?

Standard timeline: 6-10 weeks from application to completion

Faster possible if:

Straightforward property
No legal complications
Responsive solicitors
All documentation ready quickly

Can take longer if:

Leasehold property with complex lease
Multiple tenants requiring extensive due diligence
Planning issues
Legal complications
Slow solicitors or valuers

We chase progress daily to keep things moving.

Commercial Mortgage Case Studies

Case Study 1: Liverpool Cafe Purchases Freehold

Client: Established cafe on Bold Street, trading 8 years, renting premises

Opportunity: Landlord offered freehold for sale at £485,000

Situation:

Business turnover £340,000 per annum
Net profit £82,000 per annum
Rent £32,000 per annum
Owners had £175,000 deposit saved

Solution: Owner-occupied commercial mortgage

Loan: £310,000 (64% LTV)
Rate: 4.9% over 20 years
Monthly payment: £2,040

Outcome:

Previously paid £2,667 per month rent
Now pay £2,040 mortgage
Save £627 per month
Building business equity
Pension asset for owners

Case Study 2: Property Investor Buys Industrial Unit

Client: Experienced Liverpool property investor with 6 residential BTLs

Opportunity: 8,000 sq ft industrial unit in Speke, let to established manufacturing company

Situation:

Purchase price: £520,000
Rental income: £42,000 per annum
Tenant on 12-year FRI lease
Strong tenant covenant (established 35 years)
Investor had £180,000 deposit

Solution: Commercial investment mortgage

Loan: £364,000 (70% LTV)
Rate: 5.4% over 25 years
Monthly payment: £2,220

Outcome:

Monthly rent: £3,500
Monthly profit after mortgage: £1,280
Gross yield: 8.1%
Net yield after costs: 6.5%
Excellent long-term investment

Case Study 3: Retail Parade Acquisition

Client: Commercial property investor looking to expand portfolio

Opportunity: Parade of 4 retail units in South Liverpool

Situation:

Purchase price: £680,000
All 4 units let to local businesses
Combined rent: £54,000 per annum
Mixture of lease lengths (5-15 years)
Investor had £240,000 deposit

Solution: Commercial portfolio mortgage

Loan: £476,000 (70% LTV)
Rate: 5.7% over 20 years
Monthly payment: £3,330

Outcome:

Monthly rent: £4,500
Monthly profit after mortgage: £1,170
Gross yield: 7.9%
Diversified investment (4 tenants reduces risk)
Good capital appreciation potential

Case Study 4: Professional Partnership Buys Office

Client: 4-partner accountancy firm in Liverpool

Opportunity: Purchase 4,500 sq ft office in Commercial District

Situation:

Purchase price: £595,000
Partnership turnover £1.8m per annum
Currently paying £48,000 rent per annum
Partners contributed £210,000 deposit collectively

Solution: Partnership commercial mortgage

Loan: £385,000 (65% LTV)
Rate: 5.1% over 25 years
Monthly payment: £2,350

Outcome:

Previously paid £4,000 monthly rent
Now pay £2,350 mortgage
Save £1,650 per month (£19,800 per year)
Partnership owns appreciating asset
Retirement planning asset for partners

Case Study 5: Mixed-Use Property Investment

Client: First-time commercial investor, experienced residential BTL landlord

Opportunity: Shop with 2-bed flat above in Liverpool suburb

Situation:

Purchase price: £295,000
Shop let at £14,400 per annum
Flat let at £650 per month (£7,800 per annum)
Total income: £22,200 per annum
Investor had £105,000 deposit

Solution: Semi-commercial mortgage

Loan: £190,000 (64% LTV – conservative for first commercial)
Rate: 5.8% over 20 years
Monthly payment: £1,330

Outcome:

Monthly income: £1,850
Monthly profit after mortgage: £520
Gross yield: 7.5%
Good entry into commercial property
Both tenants on 3+ year leases

Areas We Cover

We arrange commercial mortgages across:

Liverpool: All L postcodes (L1-L40) Wirral: All CH postcodes and L41-L45 Sefton: Southport, Formby, Crosby (PR8, PR9, L37-L38) Knowsley: Prescot, Huyton, Kirkby (L34-L36) St Helens: All WA9-WA11 postcodes Halton: Widnes, Runcorn (WA7-WA8) Warrington: WA1-WA5 Cheshire: Chester and surrounding areas

Getting Started

Free Commercial Mortgage Consultation

What we’ll cover:

Is your purchase/refinance viable?
How much can you borrow?
What interest rates to expect?
How much deposit you’ll need?
Timeline and process
Alternative options if applicable

What to Have Ready

For initial conversation:

Property address (if you’ve found one)
Approximate purchase price or property value
How much deposit you have available
Property type (office, retail, industrial, etc.)
Your business/investment background

For formal application (we’ll guide you on these):

3 years business accounts (if owner-occupied)
3 years personal tax returns
Business bank statements (6 months)
Personal bank statements (3 months)
Proof of deposit funds
Property details and tenure
Lease details (if investment property)
Business plan (if owner-occupied)
ID and proof of address

Don’t worry if you don’t have everything – we’ll explain exactly what’s needed for your specific situation.

Next Steps

Contact us – phone, email, or visit our office
Initial assessment – we’ll review your situation (usually 30-45 minutes)
Lender research – we’ll identify the best lenders for you
Present options – usually 2-3 lender options with pros/cons
Application – we’ll compile and submit everything
Process management – we’ll handle everything through to completion
Completion – you own your commercial property!

Alternatives to Commercial Mortgages

Sometimes a commercial mortgage isn’t the right solution. We can also help with:

Bridging Finance

Better if:

You need to complete very quickly (under 4 weeks)
Property is in poor condition
You’re planning major refurbishment
You haven’t got tenants yet (investment property)

Then refinance to commercial mortgage once property is tenanted/refurbished.

Development Finance

Better if:

You’re planning substantial building work
Converting property use (office to residential, etc.)
Building new commercial units
Heavy refurbishment required

Business Loans

Better if:

You want unsecured finance
Need working capital more than property
Want faster access to funds
Don’t want property tied up as security

Asset Finance

Better if:

You need equipment, vehicles, machinery
Want to preserve cash for other purposes
Equipment is the primary need, premises secondary

We’ll honestly advise which product best suits your situation.

Commercial Mortgage Checklist

Before You Start Property Hunting

Check your business credit score (Experian, Equifax)
Check your personal credit score
Gather 3 years business accounts
Calculate your available deposit
Speak to us for initial affordability assessment
Get Mortgage Agreement in Principle if making offers

When You Find a Property

Arrange property viewing
Check lease details (if leasehold)
Review tenant leases (if investment property)
Check business rates and service charges
Verify planning permission for your intended use
Instruct solicitor
Arrange buildings insurance quote
Submit formal mortgage application through us

During the Process

Provide all documentation requested promptly
Facilitate valuer access to property
Respond to solicitor queries quickly
Review mortgage offer when issued
Arrange deposit funds transfer
Confirm completion date with all parties
Arrange property insurance from completion date

After Completion

Receive keys and property documentation
Set up utility accounts
Register with Liverpool City Council for business rates
Arrange any necessary refurbishment/fitting out
Keep all property-related receipts for accountant
Set up mortgage payment direct debit
Build cash reserves for mortgage cover (6-12 months recommended)

Contact Liverpool Commercial Finance

Ready to discuss your commercial mortgage needs?

Phone: 0151 314 8757
Email: admin@liverpoolcommercialfinance.co.uk
Office: 49 Jamaica Street, Liverpool L1 0AH

Office Hours:

Monday to Friday: 9am – 6pm
Saturday: 10am – 2pm (by appointment)
Evening appointments available on request

Visit Our Office

We welcome face-to-face meetings at our Liverpool city centre office.

Typical meeting duration: 45-60 minutes for initial consultation

What to bring:

Recent business accounts (if available)
Property details (if you’ve found one)
List of questions
Notebook for taking notes

Parking: Several NCP car parks within 5 minutes walk

Public transport:

Liverpool Lime Street: 10 minutes walk
Moorfields Station: 5 minutes walk
Multiple bus routes nearby

Property Viewings

For larger commercial properties or complex situations, we’re happy to:

Attend viewings with you
Visit the property to understand it better
Meet you at the property with your surveyor/architect
Provide initial assessment of fundability on-site

This helps us give you more accurate guidance and position applications effectively.

About Our Commercial Mortgage Team

Based in Liverpool city centre with over 30 years of combined experience, our team specialises in arranging commercial property finance across Merseyside and the North West.

Our Background

Our team includes:

Former bank commercial lending managers: Who understand exactly how lenders assess applications and what makes them say yes
Commercial property investors: With personal portfolios who understand the investor mindset
Business owners: Who’ve purchased their own business premises and know the owner-occupier perspective
Experienced mortgage brokers: Who’ve arranged hundreds of commercial mortgages

This diverse experience means we can advise from multiple perspectives – we’re not just mortgage brokers, we understand property, business, and investment.

Our Approach

We’re not salespeople pushing you toward any particular lender or product. Our job is to:

Understand your specific situation and goals
Research the entire market for suitable lenders
Present you with honest pros and cons of each option
Let you make an informed decision
Then deliver the process efficiently

We measure success not by the number of deals we do, but by the quality of outcomes for our clients. Many clients come back for their second, third, fourth commercial mortgages – that’s our best measure.

Liverpool Focus

While we can arrange commercial mortgages UK-wide, our specialist knowledge is Liverpool and Merseyside. We know:

Which Liverpool locations lenders prefer
Typical commercial property values across different areas
Liverpool planning considerations
Local commercial property solicitors and surveyors
Which local developments are succeeding
Where the opportunities are

This local knowledge adds real value – we’re not just form-fillers, we’re genuine Liverpool commercial property specialists.

Commercial Mortgage Resources

Useful Links

Liverpool City Council:

Business rates: liverpool.gov.uk/business-rates
Planning applications: liverpool.gov.uk/planning
Commercial property searches: liverpool.gov.uk/searches

Tax Information:

Stamp Duty Land Tax calculator: gov.uk/stamp-duty-land-tax
Commercial property tax: gov.uk/business-tax

Legal:

Find a commercial property solicitor: lawsociety.org.uk

Valuers:

Find a RICS surveyor: ricsfirms.com

Key Terms Explained

FRI Lease (Full Repairing and Insuring): Tenant responsible for all repairs, insurance, and maintenance costs. Landlord receives “clear” rent with minimal responsibilities.

Institutional Lease: Long lease (often 15-25 years) with upward-only rent reviews, typically to blue-chip tenants. Highly attractive to lenders.

Tenant Covenant: The financial strength and creditworthiness of the tenant. Strong covenants (e.g., major national companies) attract better mortgage terms.

Service Charge: Annual charge (usually paid quarterly) covering common area maintenance, management fees, insurance for leasehold properties.

Yield: Annual rental income as percentage of property value. E.g., £50k rent on £625k property = 8% yield.

Capital Value: The property’s market value, distinct from the rental income it generates.

Gross to Net: Gross yield is rent ÷ property value. Net yield deducts costs (voids, maintenance, management) from rent before dividing by property value.

EBITDA: Earnings Before Interest, Tax, Depreciation and Amortization. Used to assess business strength for owner-occupied mortgages.

Why Liverpool Commercial Property?

Strong Investment Case

Economic growth:

Liverpool City Region economy grew faster than UK average pre-pandemic
Recovery strong across multiple sectors
Major infrastructure investment ongoing

Demographics:

Population growing (498,000 in city, 1.4m in metro area)
Young population (40,000 university students)
Growing professional class

Tourism & Culture:

4th most visited UK city
UNESCO World Heritage waterfront
Major events and conferences
Growing visitor economy

Regeneration:

£14 billion investment pipeline
Ten Streets development area
Baltic Triangle transformation
Knowledge Quarter expansion

Connectivity:

Port of Liverpool (2nd largest container port)
Liverpool John Lennon Airport
Excellent motorway links (M62, M57, M58, M6)
HS2 connections planned

Value Opportunity

Compared to other Northern cities:

Manchester city centre offices: £300-400 per sq ft
Leeds city centre offices: £280-350 per sq ft
Liverpool city centre offices: £200-280 per sq ft

Similar gap exists across retail and industrial sectors.

This means:

Better entry yields for investors
Stronger rental coverage for mortgages
Capital appreciation potential as Liverpool continues developing

Risk consideration: Lower capital values can mean lower liquidity and potentially longer sale times, but for long-term investors this creates opportunity.

Final Thoughts

Commercial property ownership, whether for your business or as an investment, can be highly rewarding both financially and strategically. A commercial mortgage is typically the most cost-effective way to access this asset class.

Key takeaways:

Preparation matters: The better prepared you are with accounts, business plans, and documentation, the smoother the process
Use expertise: Commercial mortgages are complex – using a specialist broker saves time, stress, and often money
Local knowledge counts: Understanding Liverpool’s commercial property market helps identify good opportunities and avoid pitfalls
Think long-term: Commercial property is a long-term play – focus on fundamentals (location, tenant quality, property condition)
Have reserves: Always maintain 6-12 months mortgage payment reserves for unexpected situations

We’re here to help at every stage – whether you’re just exploring the idea of buying commercial property, have found a specific property you want to purchase, or are looking to refinance existing commercial property.

Every commercial mortgage journey is different, but our process is proven and our commitment to your success is absolute.

Let’s start the conversation today.

Call: 0151 314 8757
Email: admin@liverpoolcommercialfinance.co.uk

Liverpool Commercial Finance

Expert commercial property finance for Liverpool businesses and investors

30+ years combined experience | 40+ lenders | No upfront fees | Liverpool city centre based

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