Commercial Mortgages London
5+ assets · Single facility

Commercial Portfolio Refinance London

Replace the patchwork of individual mortgages, maturity dates and lender relationships with a single facility, secured as a blanket charge or as aggregated charges. £2M to £25M typical. Loan-to-value 65 to 70% across the portfolio, aggregated interest cover 140 to 150%, interest rates 6.5 to 8.0% pa, 5 to 25 year repayment terms. Limited company holding structures supported.

Min portfolio

5+ assets

Facility size

£2M to £25M+

LTV

Up to 70%

Rate

6.5 to 8.0% pa

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What does portfolio consolidation actually look like?

Portfolio refinancing is a single commercial facility secured against multiple investment assets, replacing the patchwork of individual mortgages and maturity dates that builds up across a landlord's lifecycle. For London investors carrying five or more commercial or semi-commercial properties, the operational saving alone justifies the move: one quarterly review, one ICR test, one lender relationship, one renewal date, one covenant set.

Two core structures. A blanket charge places one charge across all assets. It prices keenest on interest rate but locks the whole portfolio together, which makes selling a single asset harder. An aggregated facility takes individual charges aggregated against a single facility limit, which is more flexible if you want the option to sell or refinance specific properties out. Release fees apply on the aggregated structure when an asset is removed, and the structure works because the remaining portfolio absorbs the residual debt.

Aggregate ICR is tested across the portfolio at 140 to 150% stressed at a notional interest rate 1 to 2% above pay rate. Tenant concentration matters: if more than 20 to 25% of income comes from a single tenant, lenders may price wider or cap loan-to-value. Sector concentration is read the same way. Geographic concentration inside Greater London is not a problem, and several desks actively prefer it, because a London-only book is easier to value, easier to monitor and easier to sell on if the lender ever needs to.

Most London portfolio refinancing is taken out by limited company holding structures, either a single corporate-level entity or a topco with subsidiary SPVs, partly for tax efficiency and partly because lenders prefer a clean corporate counterparty on facilities above £5M. Stamp duty land tax does not apply on refinancing, because there is no transfer of beneficial ownership, which is part of what makes consolidation maths work even when early repayment charges on the existing facilities have to be modelled in. Portfolio refinancing is unregulated commercial lending and sits outside the Financial Conduct Authority's regulated mortgage perimeter. We do not hold FCA authorisation because the products we arrange are unregulated.

From asset schedule to drawdown across multiple properties

1. Portfolio analysis

Asset list, current debt schedule, leases, rent roll and recent valuations. We model aggregated ICR, sector mix, tenant concentration and borough spread.

2. Lender shortlist

Three to five portfolio desks shortlisted on facility size, sector mix and LTV target. Indicative terms within 7 working days.

3. Structure decision

Blanket charge against aggregated. Term length. Fixed against tracker interest rate. The trade-offs are modelled before submission, not after.

4. Credit pack

Asset-by-asset pack plus an aggregated portfolio summary. The lender needs to see the whole shape clearly: concentration, covenant, lease maturities.

5. Co-ordinated valuations

Multiple RICS Red Book valuations co-ordinated across the portfolio, typically 4 to 6 weeks for a full set and the longest critical-path item.

6. Legals and ERC handling

Multi-asset legal pack, intercreditor handling for any retained debt, early repayment charge settlement on existing facilities. 6 to 10 weeks total typical.

Portfolio profiles where this facility earns its keep

  • London commercial landlords holding five or more investment properties under different lenders
  • Multi-borough portfolio holders consolidating three or four bank relationships into one
  • Investors facing multiple maturity dates on individual fixes inside a 24-month window
  • Family offices and professional investor LLPs holding mixed commercial and semi-commercial books
  • Landlords releasing equity across the portfolio to fund the next acquisition
  • Investors moving from individual SPVs into a single corporate-level holding limited company
  • Landlords whose existing bank relationship cannot grow far enough to fund the next deal

Why portfolio landlords concentrate in the capital

Portfolio refinance matters more in London than in any other UK market, and the reason is structural rather than rhetorical. London holds 33 boroughs, a commercial stock that stretches from Square Mile offices to suburban parades, and a population of landlords who bought incrementally across decades because that is how London high streets came to market. The result is a distinctive borrower profile: eleven assets across four boroughs, six lender relationships, six maturity dates, and nobody with a single view of the book. Consolidating that into one facility is often worth more in reclaimed management time than in interest saved. Shawbrook, Cambridge and Counties, InterBay Commercial, Cynergy Bank, Paragon and Allica are the most active portfolio desks for the £2M to £25M London bracket. OakNorth, Reliance and Handelsbanken cover larger and more relationship-led cases, while Lloyds, NatWest and Santander compete at the prime end. The typical London book we see: two or three semi-commercial parades in Hackney, Wandsworth or Ealing, a secondary office or two around the City fringe, a light industrial unit in the west London belt, and a retail investment in an outer town centre such as Croydon or Bromley. Refinancing volume is particularly strong on portfolios with original draws from 2019 to 2021, where current valuations support a better consolidated loan-to-value than the original facilities. Pricing currently 6.5 to 8.0% pa.

Portfolio Refinance FAQs

Typically five or more. Some lenders accept three for the right covenant and some require seven for the full programme rate. Below five properties, individual investment commercial mortgages usually price better and the consolidation premium is not worth paying.
A blanket charge prices keenest on interest rate but locks the portfolio together, which makes selling an asset harder. Aggregated is more flexible if you want to sell or refinance individual properties. Release fees apply when an asset comes out, but the structure holds because the rest of the portfolio absorbs the residual debt. We model both before recommending, and in London the flexibility usually wins because disposals are more frequent.
Aggregate ICR of 140 to 150% stressed at a notional interest rate 1 to 2% above pay rate. A single asset can sit below that if the aggregate passes, and that is the whole point of the structure: stronger covenants carry the weaker ones. It is why a part-vacant unit inside an otherwise well-let London book does not sink the facility.
Yes. Most facilities allow additions and removals with lender consent. Adding an asset usually triggers a top-up application with a fresh RICS valuation and a new ICR test. Removing one triggers a release fee but is generally straightforward, provided the residual debt still passes the aggregate cover test across the remaining portfolio.
No. Refinancing existing debt against properties you already own does not transfer beneficial ownership, so stamp duty land tax does not apply. The exception is where a refinance is structured alongside a transfer between connected limited companies for tax purposes, and we flag that and route it through your tax adviser before structuring.
No. Commercial portfolio facilities sit outside the Financial Conduct Authority's regulated mortgage perimeter in all standard cases. The borrower is a limited company or LLP, the assets are commercial or semi-commercial held for investment income, and the facility is unregulated commercial lending rather than a residential mortgage. We do not hold FCA authorisation because the products we arrange are unregulated, and where a deal would require regulated permissions we refer the enquiry to a regulated firm.

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