At Clopton Capital, we provide expert brokerage for CRE loans (Commercial Real Estate loans) tailored to the unique demands of the United Kingdom property market. From acquisition capital for London office blocks to refinancing regional industrial portfolios, we connect professional investors and owner-occupiers with a diverse range of capital sources, including high-street banks, challenger banks, life companies, and private debt funds.
CRE loans are credit facilities secured by income-producing commercial property rather than residential dwellings. In the UK, these loans are structured based on the property’s ability to generate rent (Interest Cover Ratio) and its overall market value (Loan-to-Value).
While the fundamentals of “Commercial Real Estate” are global, the UK market has specific nuances that impact loan approval:
Lease Structures: Lenders focus on FRI (Full Repairing and Insuring) leases, which pass operational costs to the tenant.
WAULT: The Weighted Average Unexpired Lease Term is the primary driver of pricing.
Yield Compression: Lenders monitor “Prime” vs. “Secondary” yields to determine the appropriate leverage levels.
ESG & EPC: UK lenders now strictly enforce Energy Performance Certificate (EPC) requirements, with properties rated below ‘E’ often requiring Capex reserves before funding.
Clopton Capital arranges a wide variety of commercial property debt structures:
Acquisition Financing: Funding for new property purchases with competitive LTVs.
Investment Refinancing: Restructuring existing debt to improve cash flow or lock in fixed rates.
Equity Release (Cash-Out): Unlocking capital from appreciated assets for further reinvestment.
Bridge & Transitional Loans: Short-term “gap” funding for assets requiring stabilization or change-of-use.
Portfolio/Blanket Loans: Financing multiple assets under a single facility to simplify management and pricing.
Mezzanine & Preferred Equity: Subordinate capital to increase total leverage and reduce sponsor equity requirements.
Loan Size: £750,000 to £50,000,000+
Leverage: Typically 60%–75% LTV for senior debt; up to 85% with mezzanine.
Terms: 12 months (Bridge) to 15+ years (Institutional/Life Co).
Amortisation: Up to 25–30 years, or Interest-Only periods for value-add plays.
Rates: Priced off SONIA or the Gilt-linked swap curve plus a lender margin.
Recourse: Both recourse and non-recourse options are available depending on deal strength.
To get a term sheet within 24–72 hours, we typically require:
Property Details: Address, asset class (Office, Retail, etc.), and EPC rating.
Financials: Trailing 12-month (T-12) Net Operating Income and current Rent Roll.
Asset Summary: Net internal area, occupancy percentage, and tenant profiles.
Sponsor Bio: Track record in UK real estate and high-level Net Worth/Liquidity statement.
Business Plan: For transitional assets, a summary of Capex needs and leasing strategy.
A borrower acquired a £9.5M industrial asset. Clopton structured a 75% non-recourse loan with 2 years of interest-only payments, allowing the client to maintain high liquidity while scaling their portfolio.
An office owner in a regional hub faced a maturing facility. We arranged a 5-year fixed-rate loan with no prepayment penalties, providing the flexibility to sell the asset later while cashing out equity for new projects.
A corporate borrower with a mix of retail and industrial assets totalling £16.5M sought to streamline their debt. Clopton structured a single non-recourse portfolio mortgage, delivering £6M in cash-out proceeds at a competitive 10-year fixed rate.
Work with a specialist broker that understands the complexities of the UK commercial market.
In the UK, 100% LTV is rare. However, through a combination of Senior Debt and Mezzanine Financing or Preferred Equity, we can often reduce the required sponsor down payment to as little as 10-15%.
Yes. We offer both floating rates (linked to SONIA) and fixed-rate options (linked to swap rates) for terms up to 10+ years.
Bridge loans are almost always interest-only. Permanent “Investment” loans often feature a mix—perhaps 2–5 years of interest-only followed by a 20-year amortisation schedule.
Yes. We arrange financing for commercial assets in England, Scotland, Wales, and Northern Ireland.
