At Clopton Capital, we help UK property owners convert their built-up equity into liquid capital through a commercial cash out refinance. Whether you are looking to fund a new acquisition, renovate an existing asset, or simply restructure your balance sheet, we provide access to lenders who offer flexible equity takeout options without the rigid restrictions often found at traditional high-street banks.
In the UK property market, a commercial cash out refinance allows you to replace your existing commercial mortgage with a new, larger loan. The difference between the old debt and the new loan is paid to you as cash at closing.
Unlike a standard refinance—which typically only seeks to lower your interest rate or extend the term—a “cash-out” structure focuses on liquidity. At Clopton Capital, we specialise in helping you access high Loan-to-Value (LTV) ratios (up to 75%–80%) to ensure you extract the maximum value from your UK assets.
No Restrictions on Use: Unlike many UK banks that “ring-fence” capital, our lenders generally allow you to use your cash out for any business purpose—be it purchasing a second property, funding business expansion, or consolidating debt.
Non-Recourse Options: For established sponsors with stabilised assets, we can source non-recourse debt that protects your personal liquidity.
Speed of Execution: In time-sensitive scenarios, such as the need to close on an “all-cash” acquisition elsewhere, we can move from intake to term sheet in 24–72 hours.
Lower Interest Rates: Refinancing into a long-term fixed rate (often priced off the Gilt or Swap curve) is frequently cheaper than taking out an unsecured business loan or a short-term bridge.
Portfolio Expansion: Use the equity from a mature asset in London to fund the deposit for a new development in the Northern Powerhouse (Manchester, Leeds, etc.).
Immediate Liquidity: Access funds in one lump sum without having to sell the asset and trigger Capital Gains Tax (CGT).
Prepayment Penalties: If your current UK mortgage has high exit fees or “break costs,” the benefit of the cash-out must be weighed against these expenses.
Increased Debt Service: A larger loan means higher monthly repayments, requiring a strong Debt Service Coverage Ratio (DSCR).
Loan Size: £1,000,000 to £50,000,000+
Leverage: Up to 80% LTV on first mortgages; higher leverage possible via Mezzanine or Preferred Equity layers.
Terms: Fixed or floating (SONIA + margin) for 3, 5, 7, or 10 years.
Amortisation: Up to 30 years, often with Interest-Only periods for the initial 2–3 years.
Lending Area: UK-wide coverage including all major commercial, industrial, and retail hubs.
Consider a UK partnership that owns a retail park in the Midlands purchased for all-cash or with low leverage years ago. The property has appreciated significantly. By completing a commercial cash out refinance at 75% LTV, the partnership can extract several million pounds in tax-efficient capital. They can then use this “dry powder” to move immediately on a distressed multifamily asset in Manchester, providing a massive advantage in an “all-cash” bidding war.
Turn your property’s value into usable capital for your next big move.
A purchase mortgage requires a down payment. A refinance is based on the current appraised value of the property you already own. There is no down payment; instead, the “equity” you have built acts as your security.
In the UK market, the maximum is usually determined by the asset type and its Net Operating Income (NOI). Most lenders cap at 75%–80% LTV, though certain specialist funds may go higher for high-yield assets.
Generally, the cash received from a loan is not considered taxable income (unlike selling the property, which would trigger CGT). However, we always recommend consulting with a UK tax advisor regarding your specific corporate structure.
Yes. We specialise in “investor loans” for properties managed professionally where the borrower is not a day-to-day occupant.
