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  • Philip Bacon

Mortgage Loan to Values Per Business Sector

Updated: Oct 3, 2023

If you're considering getting a mortgage for your business, it's important to know that the amount you can borrow can vary depending on your sector. To help you understand this better, we've compiled a list of typical mortgage breakdowns based on industry and business type.


Healthcare businesses such as dental practices can get a maximum of 100% loan-to-value (LTV) against the freehold when purchasing or remortgaging a property, with a maximum term of 25 years. Business purchases for dental practices have a maximum 80% LTV against goodwill.


Pharmacies can get a maximum of 90% LTV against freehold practices when purchasing or remortgaging a property, with a maximum term of 15 years. Business purchases for pharmacies have a maximum 80% LTV against goodwill practices, with a maximum term of 15 years.


GP surgeries can get a maximum of 100% LTV against freehold practices when purchasing or remortgaging a property, with a maximum term of 20 years.


Specialist care businesses can get a maximum of 90% LTV against alternate use valuation when purchasing or remortgaging a property, with a maximum term of 15 years. Supported living businesses can get a maximum of 65% LTV against alternate use valuation, with a maximum term of 15 years.


Elderly/residential care businesses can get a maximum of 65% LTV against going concern valuation when purchasing a business, with a maximum term of 15 years. Opticians can get a maximum of 60% LTV against trade-related valuation, with a maximum term of 15 years.


Vet practices can get a maximum of 100% LTV against vacant possession when purchasing or remortgaging a property, or a maximum of 90% LTV against operating concern value when purchasing a business, with a maximum term of 25 years.


For manufacturing businesses, the maximum LTV against vacant possession value is 80%, with a maximum term of 20 years. For day nurseries, the maximum LTV against going concern value is 70%, with a maximum term of 25 years. Agriculture businesses can get a maximum of 80% LTV for land purchase, depending on the subsector, with a maximum term of up to 25 years.


Business services such as architects, estate agents, and business consultants can get a maximum of 70% LTV against vacant possession value when purchasing or remortgaging a property, with a maximum term of 15 years. Contractor and Sub-Contractor businesses can get a maximum of 70% LTV against vacant possession value, with a maximum term of 15 years.


Retail businesses can get a maximum of 65% LTV, dependent on the subsector, with a maximum term of 15 years.


For hospitality businesses, such as hotels, guest houses, and B&Bs, the maximum LTV against going concern value is 60%, with a maximum term of 15 years. Pubs, restaurants, and takeaways can get a maximum 60-70% LTV against going concern or vacant possession value, with a maximum term of 15 years.


Great, so you know the numbers but, how long does it take to get a commercial mortgage?


The time it takes to get a commercial mortgage in the UK can vary depending on several factors, such as the complexity of the loan, the lender's processes, and the documentation required. Generally, the commercial mortgage process can take anywhere from a few weeks to a few months.


Typically, it takes longer to obtain a commercial mortgage than a residential mortgage because the loans are larger and more complex. The process of obtaining a commercial mortgage usually involves several stages and working with an experienced commercial mortgage broker can streamline the application process.


How long can you take a commercial mortgage out for?


The length of a commercial mortgage in the UK can vary depending on the lender, the type of property being financed, and the borrower's financial situation. Typically, commercial mortgages have a term of 5 to 25 years, although some lenders may offer longer terms of up to 30 years or more.


What should I do if I am looking for a mortgage?

Please get in touch with Knights Row if you would like to source a mortgage against any type of business.


Email matt@knightsrow.co.uk or call 0333 339 5905


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