What are the steps involved in refinancing a commercial property?

25 June 2026

Remortgaging a commercial property means you are effectively replacing your current mortgage with a new one to secure better interest rates, release equity or restructure debt. The process takes around 60-120 days and generally follows the same steps.

Before the process begins, the first thing you need to do is seek legal advice. A solicitor will advise you on best practice and will be able to carry out deed checks and examine your existing mortgage.

Step one – Review your current mortgage

You first need to evaluate the current status of your property’s mortgage to determine if refinancing is the best option for your business.

Identifying your current loan balance and interest rate will help you decide whether a remortgage is the right next step for your business.

Your solicitor will thoroughly review the terms of your current mortgage with a focus on ending the mortgage early, including any early repayment penalties.

Step two – Gather documentation and assess affordability

Lenders will want to build a clear picture of your financial position before progressing any further.

You will need key documents including recent business accounts, management figures and bank statements.

Alongside this, the lender will assess affordability by looking at your income, outgoings and the overall performance of your business. The aim here is to demonstrate that you can comfortably repay the new loan.

Having everything organised and up to date at this stage can help avoid delays later in the process and keep things moving smoothly.

Step three – Property valuation

Once you have submitted all your documentation, the lender will arrange to value the property. The valuation will assess the market value and overall condition of the property.

If the valuation is lower than expected, it may reduce the amount you can borrow. This is known as the Loan-to-Value (LTV) ratio.

Step four – Apply for a mortgage

Following the valuation, you will submit a full mortgage application. This is where the lender will carry out a more detailed assessment of your financial position, including credit checks, affordability testing and a deeper review of your business accounts and property income.

This is the most time-consuming part of the process because lenders want to understand the risk involved.

Step five – Legal due diligence and completion

This is where our legal expertise comes in. The legal teams for both you and the lender will now carry out the necessary legal work.

This includes reviewing the loan offer, carrying out title checks, checking for any restrictions and ensuring all legal requirements are met.

Once all these checks are complete, the refinance can go ahead. As soon as the new lender releases the funds, your previous mortgage will be paid off and any remaining funds will be transferred to you if you are releasing equity.

Refinancing a commercial property can be a valuable strategic move if you are looking to improve cash flow, reduce costs or unlock capital for growth. Get in touch today for expert advice on remortgaging.