Commercial Property Finance Solicitors

Commercial Property Finance Legal Services

Securing the right finance is fundamental to any commercial property transaction. Whether you are acquiring an investment property on a commercial mortgage, funding a development project with specialist finance, or refinancing an existing portfolio, the legal process must be handled with precision and speed. Legal Merchant's solicitors act for both borrowers and lenders on the full range of commercial property finance transactions, providing expert due diligence, robust security documentation, and proactive matter management.

Commercial Mortgages

A commercial mortgage is a long-term loan secured against commercial property — typically used to fund the acquisition or refinancing of investment or owner-occupied commercial premises. Our solicitors advise borrowers and lenders on:

• Due diligence and title reporting — thorough investigation of the property title, searches, planning and tenancy documentation, with detailed reporting to the lender in the format required
• Security documentation — drafting and executing legal charges, debentures, and any required personal or corporate guarantees
• Conditions precedent — satisfying all pre-drawdown conditions specified by the lender, including title insurance, buildings insurance, planning confirmations and vacant possession requirements
• Leasehold security — advising on the requirements for lending against leasehold commercial property, including minimum unexpired lease terms and lender consent requirements
• Registration — registering the legal charge at HM Land Registry and at Companies House (where relevant)
• Refinancing — acting on the redemption of existing finance and the drawdown of new facilities

Bridging Finance

Bridging loans provide short-term funding — typically 3 to 24 months — to bridge a gap between the acquisition of a property and longer-term finance or a sale. Bridging finance is frequently used to fund: the purchase of property at auction; acquisitions where mainstream mortgage finance is not yet available; refurbishment projects prior to refinancing; and chain-breaking in residential transactions. Our solicitors act on bridging transactions quickly, providing:

• Rapid title investigation and legal reporting to meet bridging lender timescales
• First and second charge security documentation
• Advising on cross-collateralisation where multiple properties are used as security
• Exit strategy advice — ensuring the legal structure supports your intended exit (sale, remortgage or development)
• Acting on the redemption of bridge finance and drawdown of replacement facilities

Development Finance

Development finance is specialist short-term lending provided specifically to fund property development projects — from small residential conversions to large-scale commercial developments. Our solicitors act for developers and lenders on all aspects of development finance, including:

• Review and negotiation of development finance facility letters and term sheets
• First legal charge security over the development site
• Reporting to the lender's monitoring surveyor on construction progress
• Managing drawdown conditions — planning confirmations, contractor appointments, insurance
• Advising on planning obligations and infrastructure agreements that affect the lender's security
• Step-in rights — ensuring the lender has the right to step into the developer's shoes if the project falls into difficulty
• Pre-sale and forward funding agreements — where units or the completed scheme are pre-sold or pre-funded by an institutional investor
• Exit — refinancing the completed development onto a commercial investment or residential mortgage facility

Sale and Leaseback

A sale and leaseback allows a business to release capital tied up in its owner-occupied property by selling the freehold to an investor and simultaneously entering into a long-term lease of the premises. This unlocks capital without the business having to vacate its premises. Our solicitors advise on:

• Structuring the transaction to achieve the client's commercial and tax objectives
• Negotiating the terms of the leaseback — rent, term, rent review, repairing obligations and break options
• VAT and SDLT analysis
• Ensuring the lease terms are acceptable to the investor's lender if the property is being acquired with finance
• Acting for investors acquiring sale-and-leaseback properties as income-producing investments

Portfolio Refinancing

Landlords and property investors periodically refinance their commercial property portfolios — to release equity, reduce borrowing costs, or restructure their financing arrangements. Portfolio refinancing involves the redemption of existing loans and the drawdown of new facilities, often simultaneously across multiple properties. Our solicitors manage the legal process efficiently, coordinating across multiple titles and lenders to deliver a seamless refinancing.

Frequently Asked Questions