Financing commercial real estate differs fundamentally from residential lending. Underwriters evaluate the marketability of the asset, its micro-location, zoning designation, EPC rating, and the financial strength of the occupying business. In the Eindhoven region, the acute scarcity of industrial land on business parks also carries significant weight in valuations.
- Typically 60 – 80% LTV via commercial mortgage funding
- Top-up funding possible via mezzanine loans or equity contributions
- Sustainability retrofits can improve debt capacity and underlying asset value
Loan-to-value and equity requirements
Lenders apply lower loan-to-value caps to commercial property than to residential homes. For prime, liquid property — such as a logistics unit on an accessible industrial estate — gearing can reach 75 to 80 per cent of market value in tenanted condition. For bespoke or single-purpose premises, appetite drops towards 50 to 60 per cent.
The remaining gap is bridged with own equity, secondary debt, a subordinated vendor loan or a combination. In addition, allow for purchaser's costs (kosten koper): commercial property transfer tax, notary fees, valuation fees and arrangement costs.
EPC ratings and sustainability carry genuine weight
Offices must meet statutory minimum energy ratings (such as Energy Label C), and commercial lenders now formally embed sustainability into credit risk assessments. A property with an inferior energy rating will be appraised lower and may be declined altogether without a funded retrofit plan.
The practical strategy: integrate green retrofitting directly into the primary mortgage application. High-performance insulation, LED lighting, heat pumps and rooftop solar reduce utility overheads and enhance asset value, while green loan structures and government incentives accelerate the payback period.
Frequently asked questions
Should I purchase commercial premises personally or through a BV (limited company)?
Both approaches are common. Holding property personally or in a dedicated real estate holding company (vastgoed-BV) isolates property exposure from trading risks and simplifies any future exit or sale of the operating business. The tax consequences differ markedly; ensure this is modelled rigorously in advance.
How long does a commercial mortgage take to complete?
Allow six to ten weeks from submitting a complete application dossier to completion at the notary, including property valuation and any required environmental or soil surveys.