Warehouse & Industrial Unit Finance
Warehouse finance is a commercial mortgage secured on an industrial unit, warehouse or trade counter, arranged either for an owner-occupier moving out of rented space or for an investor buying a let unit. Lenders advance up to 75% loan to value for investment purchases and up to 80% for owner-occupiers who can evidence trading profits, on terms of 5 to 25 years priced from roughly 6.5%. Two things move the decision more than the rate: the unit's EPC rating, since anything below E cannot legally be let in England and Wales without an exemption, and the strength and unexpired term of the tenant's lease.
Criteria and pricing
What lenders on our panel will typically do on this product today.
- Maximum LTV
- Up to 75% investment; up to 80% owner-occupied
- Term
- 5-25 years; interest-only available on investment cases
- Rate
- From ~6.5%, fixed or over base
- Debt service cover
- Investment: 125-145% of rent; owner-occupier: 1.25x EBITDA cover
- EPC
- E or better to let; sub-E cases funded with a costed improvement plan
- Unexpired lease term
- Ideally 3+ years, or a shorter term with a strong covenant
- Arrangement fee
- 1.5-2%
- Eligible assets
- Warehouses, light industrial, trade counter, storage, small industrial estates
Worked example - 12,000 sq ft warehouse, owner-occupier
- Purchase price
- £950,000
- Loan at 70% LTV
- £665,000
- Rate 7.0%, 20-year repayment
- ≈ £5,155 pcm
- Rent previously paid on leased premises
- £6,200 pcm
- Monthly cash flow improvement
- ≈ £1,045
- Deposit and costs required
- ≈ £330,000
- SDLT at commercial rates
- £37,000
Figures are typical UK market ranges as at 2026 and are indicative only - your terms depend on the asset, the income, the exit and the lender we place the case with.
Who this works for — and who it does not
You are likely to qualify if
- Deposit of 20-30% plus SDLT and professional fees
- Two years of accounts for owner-occupiers, or leases and a tenancy schedule for investment purchases
- A valuation supporting both vacant possession and investment value
- An EPC of E or better, or a costed plan to reach it
This is the wrong product if
- Speculative purchases of vacant units with no occupier or letting evidence and no cash reserves
- Contaminated or specialist sites lenders' valuers will not sign off without remediation
- Buyers wanting to fund fit-out and racking from the mortgage - use asset finance for equipment
- Assets bought purely for a short flip, which are better on a commercial bridge
What actually happens, and when
- Week 1
Sizing and lender fit
We size against rent or trading profits, review the EPC and lease, and confirm the achievable LTV.
- Week 1-2
Terms and valuation
Indicative terms issued; RICS commercial valuation instructed.
- Week 2-6
Underwriting
Valuation reviewed, covenant assessed, environmental and title matters raised.
- Week 6-12
Legals to completion
Eight to twelve weeks is realistic on a commercial purchase; a bridge can secure the unit first where the deadline is fixed.
Frequently asked
Request indicative terms
Four details are all a lender needs to price a case: how much, what secures it, when you need it and how it is repaid. Send those and we come back with realistic terms — or tell you plainly that the case will not place.
Request indicative terms
Tell us the four things every lender asks first. We come back with realistic terms, usually the same working day.