The Client
The client was part-owner of a limited company with multiple directors. The property was owned by the limited company and was a listed building, previously converted for use partly to house their information technology company, with the remainder intended for either office space or lettable accommodation – a decision still to be made once additional funding had been secured.
The Scenario
The client wanted to raise additional funds to complete the necessary conversion works, while also securing more favourable terms than their current lender was offering. The current lender was no longer willing to extend further finance, given the intended conversion works and the nature of the building itself.
The Solution
We sought out a specialist commercial lender able to accommodate the building type, the ownership through a limited company, and the intended conversion works, while still securing very favourable market rates.
We checked all the criteria with the lender and were able to secure terms with a minimum of paperwork and a very quick turnaround time.
Summary
Lenders can be cautious about conversion and renovation projects, especially on listed buildings and semi-commercial properties. Those that will accept them often have much higher rates on offer. As a whole-of-market broker, we have the tools to find a solution for clients like this at far more favourable rates than they may have previously been quoted.
Frequently Asked Questions
Can I get a mortgage on a listed building that needs conversion works?
Yes, though the lender pool is narrower and rates are often higher than for a standard commercial property.
A specialist commercial lender comfortable with both the building type and the planned works is usually the key to securing a competitive rate.
Why might a lender refuse to extend finance on a property undergoing conversion?
Some lenders are cautious about the risk conversion works introduce, particularly on a listed or unusual building.
This does not mean finance is unavailable, only that a specialist lender is likely to be a better fit than the client’s existing one.
Can a limited company with multiple directors get a commercial mortgage?
Yes, lenders regularly work with limited companies that have several directors.
The lender will typically want clarity on the ownership structure and each director’s role before proceeding.
Can I raise capital for renovation works when remortgaging a commercial property?
Yes, this is a common reason to remortgage, particularly where the current lender is unwilling to extend further funding.
Moving to a specialist lender can secure both the capital needed and better overall terms in the same transaction.
Commercial Finance Network is a whole-of-market FCA authorised commercial finance broker working with property investors, developers, and businesses across the UK and internationally. We work across the full specialist commercial mortgage panel and will tell you which lenders will engage with your deal, what LTV and rate to expect, and how to structure the application before anything is submitted.
Commercial Finance Network is directly authorised and regulated by the Financial Conduct Authority. Your property may be repossessed if you do not keep up repayments on a loan secured against it. Commercial and business-purpose lending secured against investment property is not regulated by the Financial Conduct Authority.
Call us on +44 1494 622 111 or email info@cfnuk.com to speak to a specialist directly.
Related Pages
- Commercial Mortgages – whole-of-market advice for commercial property purchases
- Semi-Commercial Mortgages – financing for mixed commercial and residential use properties
- Commercial Mortgage Calculator – estimate affordability and stress-tested borrowing