Commercial Property and Loans

Leasehold Property Transactions

Whether you’re taking on a shop, an office suite, a hotel, or industrial premises, a commercial lease sets the terms of the relationship between landlord and tenant for the length of the agreement. As the saying goes:

For a tenant, your lease is only as good as your landlord – and a landlord’s lease is only as good as his tenant.

We advise on all aspects of leasehold property, including:

  • Granting new leases
  • Transfer or assignment of existing leases
  • Sub-leasing
  • Surrender of leases
  • Licences and tenancies at will

When things go wrong – a refusal to grant consent, a disputed assignment, or a disagreement over repairs – our experience means we can step in quickly to help resolve it.

Commercial Loans, Developer Finance and Securities

We advise on all aspects of commercial loans:

  • when you need to organise commercial loans from Buy to Let to Bridging and Roll Over Finance, Cross Guarantees or if you are a director for giving those guarantees.
  •  for private lenders needing to enforce their loan.

Key Contact – Chris Christofi

Contact Chris:

T: +44 (0)20 3418 9007
E: chris.christofi@christofi-law.co.uk

Commercial Loans FAQ

No, it’s very different. Alongside “buying” the property, your lawyers will be dealing with each lender’s own requirements, which usually can’t be confirmed until the lender issues its loan offer. Lenders in this space also tend to be more cautious, wanting extra security – additional searches, cross guarantees, director’s guarantees, separate security (such as a director’s own home), and undertakings or certificates from the solicitor. Buying an HMO adds further complexity – licensing, planning, tenancies, and local area plans. Most lenders ask for their legal fees upfront, and a reasonable rule of thumb for developers is to budget roughly 50% on top of the lender’s own solicitor’s fee.

A domestic mortgage benefits from protection under the Consumer Credit Act. Commercial lenders take a far more hawkish approach, structuring their agreements to give themselves the best chance of calling in your loan if they need to, without fear of you or a court stopping them – typically through terms like ongoing obligations to maintain the property, or loan-to-value ratios that must stay within certain limits.

Yes. If property values fall, your loan-to-value ratio can shift significantly – say, from an original 50% deposit down to effectively 30% as values change. In that situation, a lender can ask you to make up the difference, or call in the loan.

Yes. As guarantor, you’re there precisely so the lender has someone to turn to directly – they can move against you without arguing it out with the company first.

Not necessarily. Unless you’ve obtained a release, most guarantees are drafted to cover any lending with that lender, not just one specific loan. It’s worth asking the lender for a formal release once a loan is repaid – or even before, if only a small balance remains.

Considerably more than signing a document. A solicitor has to go through the transaction almost as thoroughly as a purchase, gathering additional information and assurances from the borrower – often while also handling the purchase itself alongside the loan.

No, it’s a significant legal commitment. Where a director or shareholder guarantees a company loan, each guarantor will usually need independent legal advice — from a solicitor other than the one acting for the borrower. This can be a costly step, involving a formal meeting with the guarantor, written advice, and liaison with the lender’s solicitors, who will typically require a certificate or undertaking confirming what advice was given.

Get advice before you commit. Talk to Chris about your lease, loan, or guarantee.

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