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With a purchase commercial mortgage, lenders advance based on the property value and conduct valuation and legal due diligence on title and the premises’ suitability for the intended childcare use. Applicants usually provide business financials such as accounts, management accounts or projections, along with evidence of deposit or funding plans. Typical amounts start from around £100,000 and can reach £5,000,000+ depending on LTV and property value. Lending terms are often 180 to 360 months (15 to 30 years), with fixed or variable pricing commonly in the ~5.0% to ~9.0% guidance range.

For refinancing, lenders review your current property-secured position and reassess affordability and cashflow. Some lenders look for evidence the property remains income-generating and suitable for continued childcare use. Typical amounts often sit around £150,000 up to £5,000,000+ based on remaining loan balance and property value. Terms commonly reset to around 180 to 300 months (15 to 25 years). Interest rates are often guided at ~4.5% to ~8.5% per annum depending on LTV, borrower profile, and whether fixed or variable pricing is selected. Conditional offers commonly follow valuation and legal steps within about 3 to 10 weeks.

This route supports acquisition and value-add improvements so the premises can operate as a childcare facility. Lenders typically require credible development proposals, costed budgets, and evidence of affordability for the funding structure used during works. Valuation may be based on a current and or improved basis, with risk controls affecting how the facility is priced and structured. Typical amounts are often ~£200,000 to £5,000,000+. Lending terms are commonly 180 to 360 months (15 to 30 years), and interest rates are often higher than straightforward cases, with guidance around ~5.5% to ~9.5% per annum. Because the development plan is assessed, decision times are often around 6 to 12 weeks.