Commercial Mortgages

Investing in commercial property with a mortgage can be a tactical way to grow your business, build a long-term income stream, or secure a base of operations. Whether you’re a business owner looking to buy your first commercial premises, or an investor strengthening your property portfolio, a commercial mortgage can provide the funding you need to bring your plans to life.

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What is a Commercial Mortgage?

A commercial mortgage is a loan secured against a property that is used for business purposes. This might include office buildings, retail units, industrial sites, or even mixed-use developments. Unlike residential mortgages, commercial mortgages tend to be more bespoke, often requiring specialist legal advice to ensure the transaction is structured correctly.

Why You Need Legal Support for a Commercial Mortgage

There’s no universal solution when it comes to commercial mortgages. From the structure of the loan, the conditions placed by the lender, to the specifics of the property itself, every transaction is different. Having experienced legal professionals by your side ensures that your interests are protected, and all legal obligations are met. At Toomey Legal, our conveyancers work closely with clients across Newcastle and the Northeast to:

  • Review and explain mortgage terms
  • Negotiate with lenders and third parties
  • Ensure compliance with legal regulations
  • Protect your financial interests
  • Manage risk and identify any red flags early on

Whether you’re borrowing as an individual, partnership, or limited company, we can guide you through the steps with clear, practical advice.

Commercial Mortgage Clients We Work With

We regularly support a wide range of clients with commercial mortgage legal services, including:

  • Small business owners buying their premises
  • Landlords expanding their commercial property portfolios
  • Investors purchasing multi-use or mixed-tenure buildings
  • Companies moving into new regional headquarters
  • Developers financing larger projects

No matter your size or level of experience, we offer down-to-earth advice in plain English, no unnecessary dialect, just practical support.

Commercial Mortgage – FAQs

What types of property can I buy with a commercial mortgage?
Commercial mortgages can be used to purchase a wide variety of property types, including retail units, office buildings, warehouses, restaurants, industrial facilities, and mixed-use premises. Some lenders may also support land purchases or development sites.
How much can I borrow with a commercial mortgage?
This depends on your financial standing, the type and value of the property, and the loan-to-value (LTV) ratio the lender is prepared to offer. Typically, commercial mortgage lenders offer up to 70-75% of the property value, but this varies case by case.
Do I need a deposit for a commercial mortgage?
Yes. Most commercial mortgage lenders require a deposit, often between 25-30% of the purchase price. In some cases, alternative assets or guarantees can help reduce the deposit requirement.
How long does the commercial mortgage process take?
The process usually takes between 6 to 12 weeks, depending on the complexity of the transaction and how quickly all parties can provide the necessary documentation. We aim to keep things moving efficiently on your behalf.
Are interest rates higher than residential mortgages?
Generally, yes. Commercial mortgage rates tend to be slightly higher than residential rates, reflecting the increased risk and complexity. Your rate will depend on the lender, your financial profile, and the type of property being purchased.
Can I get a commercial mortgage as a new business?
Yes, though it can be more challenging. Some lenders are open to working with new businesses if a strong business plan and financial forecast can be provided. Legal support in these cases is particularly important to ensure everything is watertight.
Do I need to be VAT registered?
Not necessarily, but some commercial properties are subject to VAT. This means you may need to pay VAT on the purchase and claim it back later. We can advise on VAT implications and how to structure the deal appropriately.
What happens if my mortgage application is rejected?
If your mortgage application is declined, it’s important to understand why. We can help review your application, liaise with alternative lenders, or advise on what needs to be done to improve your position for a future attempt.
Is there a difference between a commercial mortgage and a bridging loan?
Yes. A commercial mortgage is a long-term loan secured against a commercial property. A bridging loan, on the other hand, is a short-term loan used to “bridge” a funding gap. We can help you decide which is best for your situation.

Why Choose Toomey Legal for Commercial Mortgages?

At Toomey Legal, our reputation is built on experience, reliability, and client satisfaction. We provide a hands-on, personal service to clients throughout Newcastle and the Northeast. Whether you’re borrowing a modest sum for a local retail unit or arranging finance for a major development, we’ll treat your case with the care and attention it deserves. Here’s what sets us apart:

  • Transparent pricing with no hidden fees
  • Local expertise in the Newcastle and Northeast property market
  • Fast, responsive service
  • Experienced commercial property conveyancers
  • Clear communication throughout the entire process

Get in touch with us at 0191 605 3710 or by emailing enquiries@toomeylegal.co.uk for advice or a no-obligation quote.