Direct answer
The short answer
There is no single or guaranteed commercial-mortgage deposit. The cash contribution depends on the lender's assessment of the property, borrower, purpose and repayment position, as well as the loan compared with the lender's valuation. Budget separately for tax, valuation, legal work, surveys and other transaction costs, because these may not form part of the mortgage advance.
Key points
- Treat a quoted deposit as an indication for a defined case, not a universal minimum.
- Calculate loan to value using the proposed loan and the property value accepted for the assessment.
- Allow for a valuation below the agreed price and for costs that sit outside the purchase deposit.
- Keep evidence of the contribution, business performance, intended property use and repayment plan ready.
Deposit and loan to value answer different questions
The deposit is the cash or eligible equity contributed to the transaction. Loan to value, usually shortened to LTV, compares the proposed loan with the property value used by the lender. A published maximum LTV is product-specific and does not establish the deposit or approval for a particular business.
Why the required contribution can vary
The assessment may reflect whether the property will be owner-occupied or let, the building type and condition, location, intended use, lease or tenancy position, business performance, trading history, credit position, repayment evidence and any additional security or guarantees. Different lenders and products can apply different requirements.
Allow for the lender's valuation
The agreed purchase price and a valuation prepared for secured lending are not necessarily the same figure. If the valuation accepted by the lender is below the price, the business may need more cash or may need to reconsider the transaction. A lender's valuation is for its secured-lending decision and should not be treated as a full building survey for the buyer.
Budget beyond the deposit
Build a separate transaction budget for Stamp Duty Land Tax where applicable, legal work, searches, survey, lender valuation, arrangement or documentation fees, insurance, repairs, fit-out, moving costs and working capital. Tax treatment and VAT can depend on the property and transaction, so obtain suitable legal and tax advice rather than relying on a general guide.
Show where the contribution comes from
Keep a clear record of the proposed contribution and its source, such as retained business cash, a documented shareholder contribution or eligible equity in property. Existing borrowing, gifts, intercompany transfers and last-minute movements may need explanation and evidence. Do not assume every proposed source will be acceptable.
Prepare the evidence behind the request
A useful initial pack can include the property particulars, proposed price, intended occupation or tenancy, deposit and cost schedule, recent accounts, current management information, bank statements, cash-flow projections and details of existing commitments. Requirements vary, and a potential lender or other independent organisation makes its own assessment.
Keep the estimate separate from advice and approval
An online range, example or calculation cannot decide what a business should borrow or confirm that finance is available. Bene is an introduction service, not a lender or mortgage adviser, and does not compare or recommend mortgages. Some property-secured arrangements may fall within FCA regulation depending on the borrower, security and use, so the circumstances must be checked rather than assumed.
Common questions
Questions about this guide
Is there a minimum commercial-mortgage deposit?
There is no single minimum that applies to every property, business and lender. Any contribution indicated for one product or early discussion remains subject to the full case, valuation, criteria and approval.
Does a bigger deposit guarantee approval?
No. A larger contribution may reduce the requested LTV, but the property, borrower, purpose, repayment position, credit and full lender criteria still matter.
Can purchase costs be added to the mortgage?
Do not assume they can. Build tax, professional fees, valuation, works and other costs into the cash plan separately, then confirm the treatment of each item with the relevant lender and professional advisers.
Primary sources
Sources reviewed for this guide
- How to finance a commercial property purchaseBritish Business Bank
- UK VPGA 10: Valuation for commercial secured lending purposesRoyal Institution of Chartered Surveyors
- Stamp Duty Land Tax: non-residential and mixed ratesGOV.UK
- What is a regulated mortgage contract?Financial Conduct Authority
- Commercial finance brokersLloyds Bank
External sources provide general context and do not endorse Bene Finance or establish that a funding option is available.
This guide provides general information only and is not financial advice or a guarantee that finance will be available.