Commercial Mortgages South London
South London is the widest gap between what people say and what the statute says: six boroughs under the London Plan, twelve if you simply mean everything south of the Thames. We work to the London Plan definition of Bromley, Croydon, Kingston upon Thames, Merton, Sutton and Wandsworth, and we arrange commercial mortgages across all of it. Shops with flats over, town-centre offices, trade counters, nurseries, care homes and pubs. 90+ lenders on panel and indicative terms inside 48 hours.
A commercial mortgage in South London is long-term secured debt against business premises, underwritten on rental cover, trading profit or EBITDA depending on how the property is held. Commercial Mortgages London is a specialist commercial mortgage broker arranging owner-occupier, investment, semi-commercial and trading-business mortgages across South London.
152 commercial-relevant planning applications live on the borough registers we hold here.
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Six boroughs, 173 square miles: how the south of the river divides
No sub-region on this site is contested as heavily as this one. The London Plan groups Bromley, Croydon, Kingston upon Thames, Merton, Sutton and Wandsworth into a South sub-region covering 44,936.52 hectares, or 173.50 square miles, the largest of the five by land area. Ask anyone who lives here and the list grows to twelve, adding Bexley, Greenwich, Lambeth, Lewisham, Richmond upon Thames and Southwark, everything south of the river. Both readings are defensible. We use the London Plan version for site architecture because it is exhaustive and non-overlapping, and we cover the other six boroughs under the hubs the plan assigns them to. If your asset is in Lambeth or Lewisham, the lending conversation is identical and the panel is the same.
The numbers explain why investors come here. HM Land Registry recorded 14,652 open-market residential sales across the six boroughs in the twelve months to 29 May 2026 at a median of £515,000, down 1% on the year. Detached stock ran at £845,000, semi-detached at £630,000, terraced at £555,000 and flats at £375,000. Only 94 of those sales were new build against 14,558 existing, though the small new-build sample carried a 66% premium. The internal spread is the point: Croydon sits at a £428,000 median while Wandsworth sits at £650,000, and both sit inside the same sub-region. That is not one market, it is at least three, and pricing a commercial asset against the wrong one is how deals get downvalued.
Commercial character follows the same split. Croydon is a Metropolitan centre with the second largest concentration of town-centre floorspace in Greater London after the West End. Kingston, Sutton and Bromley are the other three Metropolitan centres in the sub-region, all retail-led with real office tails. Wandsworth is statutory Inner London and behaves like it, with four Major centres in Clapham Junction, Wandsworth, Putney and Tooting, plus the Nine Elms and Battersea regeneration frontage. Merton runs Wimbledon as a Major centre and Mitcham and Morden as District centres. Outside those cores the sub-region is neighbourhood parade: shop at ground, one to three flats above, held on a single title. That is the single most common thing we finance south of the river.
Three conversations run through every one of those markets. A business buying its own premises is tested on EBITDA cover of 1.3 to 1.5 times, LTV to 75% on bricks, priced 6.0 to 7.5%. A landlord buying or refinancing a let asset is tested on interest cover stressed at 140 to 160%, LTV 65 to 75%, priced 6.5 to 8.5%. An owner-operator buying a nursery, care home, MOT centre or pub is tested on trading accounts with goodwill stripped out, LTV 60 to 70%, priced 7.0 to 9.0%. The borough changes the valuer, the comparables and the lender shortlist. It does not change which test applies.
Commercial planning activity we can actually verify in the South sub-region
We hold 152 commercial-relevant applications across the registers we can read in this sub-region, and the qualification matters. Bromley published 38, Croydon 59, Kingston upon Thames 25 and Sutton 30, all read on 26 July 2026. Merton and Wandsworth do not publish a machine-readable register we can process, so their pages carry no planning references at all and lead with transaction data instead. The same applies to Battersea and Wimbledon, which sit inside those two boroughs. We would rather print silence than borrow a neighbouring borough's applications and pass them off as local. Four live files below show the range across the boroughs we can read.
Commercial property we fund from Bromley through to Kingston
Neighbourhood parade semi-commercial
Shop at ground with flats over on one title, the highest-volume asset south of the river. Blended cover near 145%, LTV to 75%.
Metropolitan centre retail
Units in Bromley, Croydon, Kingston and Sutton town centres, valued on covenant and unexpired term as much as floor area.
Town-centre and business-park office
Let offices priced on interest cover at 140 to 160%, LTV 65 to 75%, 6.5 to 8.5% pa.
Trade counter and light industrial
Small units and yards serving the outer boroughs, funded as owner-occupier or as let investment.
Day nurseries and care homes
Underwritten on trading accounts with goodwill stripped out, LTV 60 to 70%, 7.0 to 9.0% pa.
MOT centres and forecourts
Owner-operator assets where the trade, not the bricks, sets the lending limit. LTV 60 to 70%.
Product routes for commercial assets south of the Thames
A let asset routes through a commercial investment mortgage priced on interest cover. Shop-with-flats titles, which dominate the parades in Sutton, Bromley and Merton, route through semi-commercial at up to 75% LTV. A business buying its own unit uses an owner-occupier commercial mortgage on EBITDA cover. Nurseries, care homes, garages and pubs go through a trading business mortgage underwritten on accounts at 7.0 to 9.0%. Landlords holding several parade units across two or three boroughs consolidate through portfolio refinance at 6.5 to 8.0%. All of the above is unregulated commercial lending, which is why the FCA's regulated mortgage perimeter does not reach it and why we are not FCA authorised.
Semi-commercial
Shop with flats over, the default outer London high-street title. Blended cover near 145%, LTV to 75%, 6.5 to 8.5% pa.
Commercial investment
Let parades, single units and small multi-let estates, ICR 140 to 160%, LTV 65 to 75%, 6.5 to 8.5% pa.
Owner-occupier
Local businesses buying the unit they trade from, EBITDA cover 1.3 to 1.5x, LTV to 75% on bricks, 6.0 to 7.5% pa.
Trading business
Nurseries, care operators, MOT centres and pubs underwritten on accounts, LTV 60 to 70%, 7.0 to 9.0% pa.
Commercial remortgage
Facilities maturing out of a cheaper rate environment, repriced against current cover at 6.0 to 8.0% pa.
Which lenders lean hardest into outer south London
Different names win here than win in the Square Mile. Shawbrook and InterBay Commercial take more of our south London semi-commercial than anyone else, because the shop-with-flats title is their core product and outer borough value splits do not frighten them. Allica, Cambridge and Counties, Hampshire Trust and Aldermore compete hard on owner-occupied trade counters, garages and small industrial. NatWest, Lloyds, Barclays and Santander take the well-let town-centre stock in Bromley, Croydon, Kingston and Sutton at 60 to 65% LTV. Cynergy Bank, LendInvest, Together, Paragon and Recognise fund short unexpired terms and part-vacant units. Nurseries and care homes go to the healthcare specialists at 60 to 70%. The lower capital values south of the river mean ticket sizes are smaller, which pushes more deals toward the challenger banks than the clearers.
Property types we finance in South London
Asset classes most active in South London, each linked to the dedicated finance structure, lender appetite and typical terms for that property type.
South London commercial mortgage rates, fees and deposit
The commercial mortgage rates we are placing in South London at mid-2026 sit at 6.5 to 8.5% pa for the dominant local profile, which here is high-street retail and semi-commercial investment. Expect loan to value of 65 to 75%, which puts the deposit or retained equity at roughly a quarter to a third of the value of the property. Owner-occupied business borrowing prices from 6.0 to 7.5% pa, commercial investment from 6.5 to 8.5% pa, and trading businesses from 7.0 to 9.0% pa. A commercial remortgage on an asset you already hold in the 6 boroughs of South London runs 6.0 to 8.0% pa.
Costs beyond the rate are where South London deals are won or lost. Arrangement fees run 1.0 to 2.0% of the facility. Valuation fees start around £1,500 on a single unit and reach £8,000 or more on a multi-let London building, and the RICS Red Book valuation is the critical path on almost every case, so we instruct it in week one. Legal costs run £4,000 to £15,000. Stamp duty land tax applies at the non-residential rates. Check early repayment charges before you fix, because a five-year fix broken in year two is rarely the cheapest way to repay. Local pricing context: the median transaction in South London (6 boroughs) is £515,000, which is residential data we use only as a temperature gauge for the surrounding market.
Bridging finance in South London, and when it is the right answer
Not every South London purchase fits a term facility on day one. An auction lot, a vacant unit that needs letting before a lender will price it, or a change-of-use scheme awaiting consent all point at commercial bridging first. Bridging loans run 8.5 to 11.0% pa, or 0.70 to 0.95% per month, over three to twenty-four months, and exit onto a commercial mortgage once the asset is income-producing. We only recommend bridging finance where the exit is genuinely identified and underwritten, because an unplanned bridge is the most expensive money in commercial finance. If the term lender will take the deal now, we will tell you to skip the bridge.
Which South London commercial mortgage lenders to approach
There is no single best lender for South London commercial property, only the right lender for this building on this week's credit appetite. High-street commercial lenders price keenest on prime business: Lloyds, NatWest, Barclays and Santander all compete where the covenant is strong. Challenger lenders such as Allica, Aldermore, Cambridge and Counties, OakNorth and Paragon take most of the SME and mid-market finance in the 6 boroughs of South London. Specialist lenders, Shawbrook, InterBay Commercial, LendInvest, Cynergy Bank, Together and Hampshire Trust, cover the semi-commercial, multi-let and shorter-lease commercial finance the high street declines.
Comparing those finance options properly is the work. Most brokers send a deal to two lenders they know. We benchmark it across the panel, because the difference between the third-best and the best quote on a South London commercial property is usually worth more than every fee in the transaction combined. We arrange commercial mortgages, commercial remortgages, portfolio facilities, second charges and bridging loans. We do not arrange unsecured business loans, and we do not arrange buy-to-let mortgages on residential property, so if that is what your deal needs we will say so and point you elsewhere rather than waste a month finding out.
On eligibility, the property finance question we are asked most in South London is what a lender needs before it will commit. For owner-occupied business, two years of filed accounts is the usual minimum, though twelve to eighteen months places comfortably in well-understood sectors. For investment properties the eligibility test is about the tenant, the lease and the cover ratio rather than about you personally. Clean credit for the company and its directors matters throughout, and a full inspection rather than a desktop valuation is worth insisting on, because a thin report can cost five to ten percentage points of LTV. Send us the property market context you already have, the lease or the accounts, and we will tell you which lenders will look at it before you spend anything.
Live commercial planning in South London
152 commercial-relevant applications sit on the register for this area. Each one is a building changing use, changing hands or changing size, and most of them need finance at some point in that process. Read on 2026-07-26.
- 13/03841/S73A12026-07-20
32 PLAISTOW LANE, BROMLEY, BR1 3PA
Minor Material Amendment under Section 73 of the Town and Country Planning Act 1990 for the Variation of Condition 3 (opening hours) of planning permission ref.13/03841/FULL2 (granted for the retrospective change of use from shop (Class A1) to a larder/coffee shop (Class A1/A3) a
BR1 3PAView on portal → - 26/02696/FPA2026-07-20
3 BELL PARADE, GLEBE WAY, WEST WICKHAM, BR4 0RH
Change of use of ground floor shop from Class E (commercial, business and service) to mixed Sui Generis (Massage/Therapy/Health/Wellbeing Clinic) and Class E (sale of associated products).
BR4 0RHView on portal → - 26/02781/NOT2026-07-17
236 HIGH STREET, BROMLEY, BR1 1PQ
Change of use of part of first floor Use Class E (Commercial, Business and Service) to Use Class C3 (Dwellinghouses) to form 1No. 1 bedroom residential unit under Class MA, Part 3, Schedule 2 of the Town and Country Planning (General Permitted Development) Order 2015 (as amended)
BR1 1PQView on portal → - 26/02878/FPA2026-07-16
69 CHELSFIELD LANE, ORPINGTON, BR5 4HG
First-floor side extension and change of use from a single dwellinghouse (Use Class C3) to a six-person House in Multiple Occupation (Use Class C4), with associated front garden excavation to provide two off-street parking spaces, and provision of enclosed refuse and cycle storag
BR5 4HGView on portal → - 24/01652/S73A12026-07-09
10-12 CHILHAM WAY, HAYES, BROMLEY, BR2 7PR
Minor Material Amendment under Section 73 of the Town and Country Planning Act 1990 for the variation of Condition 7 (delivery hours) of planning permission 24/01652/FULL2 (granted for Change of use of vacant ground floor commercial premises from Class F1(a) (Beauty Therapy Train
BR2 7PRView on portal → - 26/02802/NOT2026-07-08
PEILLS COURTYARD, BOURNE ROAD, BROMLEY, BR2 9NS
Change of use of commercial building (Use Class E) to 7 dwellinghouses (Use Class C3) under Schedule 2, Part 3, Class MA of The Town and Country Planning (General Permitted Development) (England) Order 2015 (as amended) (56 day application for prior approval in respect of transpo
BR2 9NSView on portal → - 26/02487/FPA2026-06-26
LAND ADJACENT TO 22 AND 23 BRICKFIELD FARM GARDENS, FARNBOROUGH WAY, ORPINGTON
Change of use of land to a car wash, including two storey building comprising of customer waiting area, staff, office and storage rooms and associated works including boundary acoustic barriers, 6 car and 1 motor cycle parking spaces, bicycle and refuse storage, and altered acces
Farnborough & CroftonView on portal → - 24/03009/S73A2026-06-25
125 B HIGH STREET, FARNBOROUGH, ORPINGTON, BR6 7AZ
Under Section 73 of the Town and Country Planning Act 1990, variation of Condition 4 of planning permission 24/03009/FULL1 (Granted for alteration and rebuild of the existing storage area to an office at the rear of 125 High Street (Part retrospective) - Changes to previously app
BR6 7AZView on portal →
Source: the borough Public Access planning register, filtered for Class E, B2 and B8 uses, change of use into commercial, and trading-business consents. Planning activity is a market signal, not a measure of commercial lending volume.
South London sold-price data
Live HM Land Registry transaction data for the South London local authority area. Use this as market evidence when appraising your scheme or testing GDV assumptions.
Median price
£515K
-1% YoY
Transactions (12m)
14,652
Completed sales
New-build share
0.6%
94 new-build sales
New-build premium
+66.0%
vs existing stock
Median price by property type
Detached
£845K
Semi-detached
£630K
Terraced
£555K
Flat / Apartment
£375K
Recent transactions
| Date | Postcode | Address | Type | Price |
|---|---|---|---|---|
| 29 May 2026 | CR5 1PH | 112, MEAD WAY | Semi-detached | £225K |
| 28 May 2026 | CR2 9BE | 45, PRINCES AVENUE | Semi-detached | £600K |
| 27 May 2026 | SM6 8SU | 52, OSMOND GARDENS | Semi-detached | £666K |
| 27 May 2026 | BR2 6HU | 76, WILBERFORCE COURT, HOLWOOD ESTATE | Flat / Apartment | £545K |
| 27 May 2026 | SE25 6EJ | FLAT 2, 22, OLIVER GROVE | Flat / Apartment | £325K |
| 27 May 2026 | KT5 9HW | 13, RUSTON AVENUE | Semi-detached | £775K |
| 26 May 2026 | BR3 1QU | 12, INGLESIDE CLOSE | Flat / Apartment | £410K |
| 26 May 2026 | BR5 2BL | 12, FRIAR ROAD | Semi-detached | £595K |
Source: HM Land Registry Price Paid Data, South London (6 boroughs). Updated 29 May 2026. Residential transactions, PPD category A. Used as a market-temperature gauge for the surrounding area, not as a measure of commercial transaction volume.
The 6 boroughs of South London
Each borough is its own planning authority with its own lender appetite. Figures on each page are derived for that borough alone.
South London commercial mortgage FAQs
Other parts of London we cover
Buying or refinancing in South London?
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