Finance
Commercial property refinance and equity release
A commercial property refinance replaces an existing loan on an office, shop, warehouse or mixed-use building. Owners usually refinance because a facility is expiring, a bank has changed its appetite, or they want to release equity. Starting early matters, because valuations and legal work take time.
Written by Richard Goodwin, Founder and author, PrivetReviewed by Privet Team, Editorial review team, PrivetLast reviewed 23 October 2026
Why owners refinance
- The current facility is expiring and the bank will not roll it
- Lease changes have reduced income or the WALE
- The owner wants a different structure or term
- The owner wants to release equity for business use
Commercial property equity release
Commercial property equity release lets an owner borrow against the difference between value and existing debt, for working capital, expansion or another purchase. Lenders weigh the lease profile, vacancy risk and how the larger loan will eventually be repaid. Compare it with a second mortgage that leaves the first loan alone.
What lenders assess
Test cover with the interest cover calculator.
| Factor | Why it matters |
|---|---|
| Valuation | Sets the loan-to-value ratio |
| Leases and WALE | Shows how secure the income is |
| Interest cover | Tests whether rent covers interest |
| Exit | How the new loan is repaid or refinanced |
How to prepare
- Current loan statements and any discharge figures
- Lease schedule, tenancy agreements and outgoings
- Recent valuation or sales evidence
- Entity, trust and guarantor documents
- A written plan for the end of the new term
Bank or private lender
Owners who need to refinance commercial mortgage debt quickly, or whose leases are short, sometimes use a private lender as a bridge back to a bank. That is usually more expensive, so the step back to cheaper debt should be planned from day one. Read the commercial property finance guide for purchase-side detail.
Frequently asked questions
When should I start a refinance?
Well before the current facility expires. Valuations, lease reviews and legal work all take time, and lenders want time to assess.
Can I refinance with vacancies?
Possibly, but vacancies reduce income and may reduce the loan size or limit lender choice.
Is equity release the same as a refinance?
Equity release is often done through a refinance to a larger loan, but it can also be done with a second mortgage.
What costs are involved?
Typically establishment, valuation and legal fees, plus any discharge or break costs on the existing loan.
Does Privet arrange refinances?
No. Privet explains options and lets you send one enquiry to finance providers.
Related guides
- Commercial property finance
- Property refinance with private and non-bank lenders
- Property equity release
- Acquiring commercial property
Glossary: wale, interest cover ratio, refinancing
Run the numbers
Test cost and timing with the matching calculator before you speak to anyone. Then send one enquiry to finance providers.
Cite or share this guide
Privet (2026). Commercial property refinance and equity release. Retrieved from https://privet.com.au/finance/commercial-property-refinance
Send one enquiry to finance providers
- Free, and no credit check to enquire
- One short form, shared only with your consent
- Private and non-bank providers review your scenario
Free. No obligation. Not an application for credit.