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Do lenders do enough to help businesses buy their premises?

ended 14. May 2026

Over half of all UK commercial property is rented by the businesses that occupy it, according to the Property Industry Alliance's most recent Property Data Report. Against this backdrop, a Newspage commercial broker has said many businesses are unaware that there are now lenders out there who will provide a mortgage on their premises at 80% LTV (as opposed to the traditional 60%-75% LTV. Given that some lenders will lend up to 100% LTV on a commercial property for established professional practices, such as lawyers, vets, dental and medical practices, do you think lenders are doing enough to help regular, profitable businesses become owners of the property they work from? Are you aware of any lenders doing anything innovative to help businesses become owners rather than tenants? Any insights, send them across by COB.

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Editor
Graham Nicoll
Financial Planner, Chartered FCSI at NCL Wealth Partners
Although not a broker and I don't have specific insights about innovative approaches from lenders, I would share a slightly different perspective with a risk management and diversification perspective.

Owning your own premises as a business, either directly or through an aligned property company or personal ownership, keeps the rent or funds inside your own wealth circle, but it also creates a concentration risk. If the business gets into financial difficulty then rent may be squeezed, but mortgage payments continue. If the business fails, then the property may be empty for a period of time, putting more pressure on the individual who owned the business and still owns the property. It may take some time to re-rent or sell.

Owning your own business premises can be attractive, but diversifying your investments outside of the reliance on the business is often a sensible approach to consider for business owners, or at least be sensible on leverage on the property.