FRI LEASES
High-Street & Out-of-Town Retail Units
Supermarkets, trade counters, retail parades, and bank freeholds.
- Up to 75% LTV
- Assessed on tenant covenant strength (e.g. Tesco, Costa, Boots vs. independent local traders)
- FRI lease protection
Acorn Commercial Desk · Tenanted Commercial Investment
Commercial Buy-to-Let Mortgages: High-Yield Capital for Tenanted Assets
Bespoke mortgage structures for commercial landlords. Finance retail units, industrial estates, offices, and multi-let business parks with whole-of-market access to 450+ lenders.
Prefer to talk? 0207 959 3882
The 4 Commercial BTL Asset Classes
Finance for Every Tenanted Commercial Asset
From blue-chip retail covenants to multi-let industrial estates, we match the asset to lenders who price on its strengths.
HIGH TENANT RETENTION
Industrial Estates & Logistics
Multi-let industrial parks, dark kitchens, storage facilities, and distribution hubs.
- High gross yields
- Flexible multi-tenant DSCR stress testing
- SPV Ltd Company structures accepted
CORPORATE COVENANTS
Commercial Offices & Co-Working Spaces
City centre office blocks, tech hubs, and suburban business parks.
- Valued on WAULT (Weighted Average Unexpired Lease Term)
- Debt Service Coverage Ratios from 1.20x
- Refinance or acquisition capital
CLASS MA UPSIDE
Commercial-to-Residential PD Opportunities
Commercial BTL assets with future Class MA Permitted Development potential.
- Yield-generating commercial cashflow today
- Planning value uplift options for future residential conversion
Underwriting Core Metrics
What Commercial BTL Lenders Look For
Three pillars drive pricing, leverage, and term length on every commercial investment facility.
Tenant Covenant Strength
Tier 1 (Blue Chip / PLC / Govt)
Low interest rates, max LTVs (75%), and longer loan terms.
Tier 2 (Established Regional / SME)
Competitive rates, assessed on 3 years of audited trading accounts.
Tier 3 (Unrated / New Startups)
Standard terms, may require rent deposits or personal guarantees.
WAULT (Lease Length Remaining)
5+ Years WAULT
Unlocks optimal commercial term mortgage pricing and 15–30 year amortisation profiles.
<3 Years WAULT
Lenders may stress test on Vacant Possession (VP) value or require a lease renewal strategy.
FRI (Full Repairing & Insuring) Leases
Why Lenders Love FRI
Tenant bears all maintenance, repairs, and building insurance costs.
Net Rental Yield Protection
Landlord receives net rental income without unpredictable maintenance deductions.
Interactive Estimator
Commercial BTL DSCR & Yield Calculator
Model gross yield, maximum leverage, and debt service coverage in real time.
£750,000
£65,000
Lease Type
Tenant Class
Gross Rental Yield8.67%
Estimated Max Loan (75% LTV)£562,500
Debt Service Coverage Ratio (DSCR)1.86x
🟢 DSCR Exceeds Lender Threshold (1.25x+)
Submit Proposal for Pre-ApprovalIndicative illustration only, modelled on interest-only servicing at tier-indicative pricing. Terms subject to full underwrite, valuation, and status.
Important Tax & Financial Advice Notice
Acorn.finance is a specialist credit broker authorised and regulated by the FCA, not a tax advisory firm or accountant. Commercial property acquisitions, Option to Tax (VAT on commercial purchases), Capital Allowances, and holding commercial assets inside a Limited Company SPV carry distinct legal and tax implications. The information on this page is designed to highlight key structural considerations so you can lead an informed discussion with your qualified accountant or chartered tax specialist.
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Related Commercial Finance Hubs & Guides
Commercial Mortgages Hub
Owner-occupied & semi-commercial finance for trading businesses.
Limited Company SPV BTL Hub
Hold commercial assets inside a tax-efficient SPV structure.
Intercompany Loans Strategy Guide
Fund commercial deposits from trading company profits.
Multi-Unit Freehold Blocks (MUFBs)
Title engineering and equity release for multi-let blocks.
Common Questions