Refinancing commercial property is rarely as straightforward as it looks. Whether you’re looking to secure better pricing, release equity for reinvestment, or simply get your borrowing arrangements working harder, the businesses that approach it well tend to be the ones that start preparing early — and know what’s coming.
Here’s what to have in order before you approach lenders.
Start earlier than you think you need to
Refinancing transactions take time. Legal work, valuations, due diligence, lender credit processes — it all adds up. Leaving things to the wire limits your options and your negotiating position. If your existing facility is approaching renewal, or you’re simply ready to explore the market, now is the right moment to start.
Get your corporate records in shape
Lenders will look closely at the borrowing entity — and at any group companies or guarantors. Having your key documents ready from the outset keeps things moving: certificates of incorporation, articles of association, statutory registers and any existing shareholders or investment agreements. None of this is unusual to be asked for but chasing it mid-transaction causes avoidable delay.
Review your property documentation
Incomplete or outdated property documentation is one of the most common reasons refinancing transactions slow down. Gather title documents, existing mortgage or charge documentation, leases and rent schedules, planning permissions and building regulations, EPCs, fire risk assessments, asbestos surveys along with maintenance records early. If anything needs updating or resolving, it’s far better to know before you’re in the middle of a transaction.
Understand what your current facility says
Before committing to anything new, read your existing documentation carefully. Early repayment charges, break costs, exit fees and notice periods can all affect the real economics of refinancing. It’s worth understanding your obligations, and the true cost of moving before you start comparing alternatives.
Prepare a clean financial picture
Lenders want confidence that the debt can be serviced. Up-to-date management accounts, and latest annual accounts (audited where relevant), cash flow forecasts and a clear picture of existing borrowing will all be requested. A well-presented financial package doesn’t just tick a box — it builds credibility and speeds up credit approval.
Be ready for AML and KYC checks
Regulatory requirements on lenders are significant, and thorough due diligence is the norm. Expect requests for proof of identity, proof of address, corporate structure information, and source of funds and wealth evidence for directors and beneficial owners. Providing complete information up front avoids the back-and-forth that can delay even well-prepared transactions.
Factor in the valuation process
Most lenders will require an independent valuation. That means access to the property, tenancy information and evidence of income. If the property has been improved or repositioned recently, make sure supporting documentation is available — it can make a real difference to the outcome.
Map your existing security
Refinancing typically means releasing existing security and putting new lender security in place. Other existing loans and related security which are not being re-financed may need to be subordinated. Identifying existing charges, debentures, guarantees and any third-party consents that may be needed early on avoids complications later. Understanding the current security structure is a straightforward step that can prevent significant delays.
Involve your advisers early
Refinancing isn’t just a financial exercise. Legal, tax and property considerations often shape the right structure. Early involvement from your legal advisers, accountants and finance professionals means issues get identified and resolved before they become problems — and completion stays on track.
Look beyond the headline rate
Pricing matters, but it’s not the whole picture. Arrangement fees, covenant requirements, reporting obligations, repayment flexibility and the lender’s willingness to support you over time are all part of the package. The cheapest facility isn’t always the right one for where your business is heading.
Preparation is what makes the difference between a smooth refinancing and a frustrating one. Getting your documents, records and financial information in order before you go to market puts you in the strongest possible position — and gives your legal advisers the best chance of keeping things on track.
For advice on refinancing commercial property, speak to Tamsin Mann (Partner, commercial property) or Eve Wright (Senior Associate, corporate and banking).
