Commercial Property Equity Release Solicitors in London
Commercial property equity release means raising cash from a shop, office, warehouse or industrial unit you already own, without selling it outright. Adam Bernard Solicitors handles the legal work.
What is commercial property equity release?
Equity is the difference between your property’s value and what you owe on it; equity release turns part of that value into cash. For commercial property, this is done through business lending or a property transaction, not a lifetime mortgage. The most common routes are refinancing with a new commercial mortgage, taking a second charge or bridging loan, or a sale and leaseback.
Our commercial property solicitors act for business owners, landlords and investors across London from our High Holborn and Upton Park offices.
Most commercial loans are not regulated mortgage contracts. Under Article 61 of the Regulated Activities Order 2001, a loan is only regulated when at least 40% of the land is used as a dwelling by the borrower or a related person. A shop with a flat above that you live in can cross that line, so mixed-use owners should check before signing.
Ways to release equity from commercial property
There are four main routes, and the right one depends on whether you want to keep owning the building.
| Route | You keep ownership? | Main legal work |
|---|---|---|
| Refinance (new first charge) | Yes | Redeem old charge, report on title, register new legal charge |
| Second charge or bridging loan | Yes | Existing lender’s consent, deed of postponement or priority, registration |
| Sale and leaseback | No, you become the tenant | Sale contract, new business lease, SDLT relief claim |
| Grant a long lease for a premium | Yes (freehold) | Draft lease, agree premium, register lease |
Refinancing or remortgaging
A new lender pays off your existing loan and advances extra cash against the property. We report on title to the lender and register its legal charge at HM Land Registry, following HM Land Registry Practice Guide 29.
If the borrower is a company or LLP, the charge must also be delivered to Companies House within 21 days of creation under section 859A of the Companies Act 2006. Missing that window makes the charge void against a liquidator or creditors.
Second charge and bridging finance
A second lender lends behind your existing mortgage. Your first lender usually has to consent, and the two lenders may agree priority in a deed of postponement. Bridging loans are short-term, so check the exit route (sale or refinance) before you commit.
Sale and leaseback
You sell the freehold to an investor and take a lease back, so your business stays in the building. The leaseback can be exempt from SDLT under section 57A of the Finance Act 2003 if the qualifying conditions are met; HMRC explains these in its SDLT Manual at SDLTM16040. The buyer pays SDLT on the sale at the non-residential rates.
The lease terms decide your future costs: rent, review pattern, repairs and break rights. We negotiate these as part of a grant of a business lease.
Granting a long lease for a premium
You keep the freehold and grant a long lease of part (for example, upper floors) in return for an upfront premium. The tenant pays SDLT on the premium and any rent.
Industrial property equity release
Industrial units, warehouses and yards release equity through the same routes, but lenders look harder at use, condition and environmental risk. Expect questions on planning use class, contamination searches, access and any existing occupational leases.
If the unit is let, lenders will check it can lawfully be let. Under the Energy Efficiency (Private Rented Property) Regulations 2015, most non-domestic property in England and Wales cannot be let with an EPC rating of F or G unless an exemption is registered.
The commercial equity release process
From instruction to funds, a straightforward refinance usually takes four to eight weeks; complex titles or sale and leasebacks take longer.
- Initial review: we check your title, existing charges and leases, and flag anything a lender will raise.
- Valuation and offer: your broker or lender values the property and issues a facility letter.
- Due diligence: searches, report on title, and replies to the lender’s solicitors.
- Documents: legal charge, any personal guarantee, deed of priority or lease.
- Independent advice: directors giving guarantees get separate advice.
- Completion: funds are released and the old lender is paid off.
- Registration: we register the charge at HM Land Registry and, for companies, at Companies House within 21 days.
Personal guarantees and independent legal advice
Lenders often ask company directors to personally guarantee a commercial loan, and many require proof that the guarantor took independent legal advice first. We provide this through our director’s personal guarantee advice service.
If anyone else lives in a mixed-use property, the lender may also need an occupier’s consent form signed after advice.
Tax points to check before you release equity
Borrowing against a property is not a disposal, so refinancing does not usually trigger Capital Gains Tax; selling the freehold in a sale and leaseback can.
- SDLT on the purchase leg of a sale and leaseback, at non-residential rates.
- Capital Gains Tax on your gain from the sale. Business Asset Disposal Relief charges 18% on qualifying gains from 6 April 2026, but property you own personally and let to your company only qualifies alongside a qualifying disposal of the business or shares.
- VAT if the property is opted to tax.
We work alongside your accountant or tax adviser on these points; we do not give tax planning advice on its own.
Residential equity release (homeowners aged 55+)
Residential equity release is different: it lets older homeowners take cash from their own home through a lifetime mortgage or a home reversion plan. Lifetime mortgages are regulated mortgage contracts under Article 61 of the Regulated Activities Order, and you must get advice from a qualified financial adviser before applying.
The cash you release can reduce means-tested benefits. For example, Pension Credit treats every £500 of savings above £10,000 as £1 a week of income.
Equity release lenders require a solicitor to explain the legal effect of the plan. We provide independent legal advice for equity release and issue the signed ILA certificate the lender needs. See our independent legal advice fees.
Why choose Adam Bernard Solicitors
- SRA-regulated solicitors listed on the Law Society’s Find a Solicitor directory
- 15 years in practice and more than 15,000 clients served
- Offices in High Holborn (Central London) and Upton Park (East London)
- One team for the charge, the lease and the registration, so nothing falls between advisers
- Video consultations by Zoom, Teams, WhatsApp or Skype
We also act on commercial property sales and purchases and assignments of commercial leases.
Speak to our commercial property equity release solicitors today. Call 0207 100 2525 or book a consultation.
This page is for general information only and does not constitute legal, tax or financial advice.
Frequently Asked Questions
Can you get equity release on commercial property?
Yes. Commercial property owners release equity by refinancing, taking a second charge or bridging loan, or through a sale and leaseback. Lifetime mortgages are for homes only and are not available on commercial property.
Is commercial equity release regulated by the FCA?
Usually not. A loan secured on property is only a regulated mortgage contract if at least 40% of the land is used as a dwelling by the borrower or a related person, under Article 61 of the Regulated Activities Order 2001. Mixed-use property can meet that test.
How long does commercial property equity release take?
A straightforward refinance typically takes four to eight weeks from instruction. Sale and leasebacks, unregistered titles and properties with several occupational leases take longer.
Do I pay stamp duty on a sale and leaseback?
The buyer pays SDLT on the sale at non-residential rates. The leaseback can be exempt under section 57A of the Finance Act 2003 if HMRC’s qualifying conditions are met.
Can I release equity from an industrial unit or warehouse?
Yes. The same routes apply, though lenders look closely at planning use, contamination, access and whether any let unit meets the minimum EPC rating of E.
Does a company need to register a commercial mortgage at Companies House?
Yes. A charge created by a UK company or LLP must be delivered to Companies House within 21 days, or it becomes void against a liquidator and creditors.
Do I need independent legal advice for equity release?
For residential equity release, lenders require a solicitor’s independent legal advice and a signed certificate. For commercial loans, lenders usually require it from any director giving a personal guarantee.
Do equity release solicitors arrange the loan?
No. Your broker or lender arranges the finance. Our solicitors handle the legal side: title, charge, lease, guarantees, registration and SDLT.
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