Industrial deposit and LTV calculator
Enter the price and loan to value to see the loan, the deposit and the deposit as a percentage of the price.
Your estimate
Illustrative only. Not a quote or advice. Not an offer of finance.
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How the industrial deposit and LTV calculator works
We take the property price and your chosen loan to value to split the purchase into a loan and a deposit. The loan is the price multiplied by the loan to value. The deposit is whatever is left, which is the price minus the loan. The deposit percentage is simply one hundred minus the loan to value, so a 70 percent loan to value means a 30 percent deposit.
The formula is loan equals price multiplied by loan to value divided by one hundred. The deposit equals price minus loan. The deposit percentage equals one hundred minus the loan to value. There is no interest or term involved here, so the result holds whatever rate you eventually agree.
Why loan to value matters on an industrial unit
Loan to value drives both the cash you need on day one and the rate a lender offers. Lower loan to value means a smaller loan, a larger deposit and usually a sharper rate, because the lender is more comfortable. Most industrial and logistics deals land between 65 and 75 percent loan to value, with a long lease to a solid covenant, or strong trading accounts where you will occupy the unit yourself, supporting the top of the range. If you want to model the monthly cost as well, use our commercial mortgage calculator.
Worked example
On a 1 million pound industrial unit at 70 percent loan to value, the loan is 700,000 pounds and the deposit is 300,000 pounds, which is 30 percent of the price. Drop the loan to value to 65 percent and the deposit rises to 350,000 pounds. We are happy to look at the wider deal and tell you which loan to value is realistic for your unit and the income or accounts behind it.
Industrial deposit and LTV calculator: common questions
How much deposit do I need to buy an industrial unit?
On most industrial mortgages the deposit is 25 to 35 percent of the price, because lenders typically fund 65 to 75 percent of the valuation. On a 1 million pound unit at 70 percent that is a 300,000 pound deposit. Adjust the loan to value in the calculator to see how the deposit changes.
What is loan to value on an industrial unit?
Loan to value is the loan as a percentage of the price or valuation. On an industrial unit the valuation rests on the bricks and the rent the unit can command, usually quoted per square foot, and on a multi-let estate the tenancy schedule as a whole. A 70 percent loan to value on a 1 million pound unit is a 700,000 pound loan and a 300,000 pound deposit. Lower loan to value usually means a better rate, because the lender carries less risk.
Can I borrow more than 75 percent on an industrial unit?
Sometimes. An owner-occupier with strong trading accounts can reach the top of the range and occasionally beyond it, and additional security can lift the figure further. A vacant unit, a short unexpired lease or a part-let estate usually sits lower. Send us the deal and we will give a realistic view.
Want a real view on your deposit?
Send us the deal and we will come back with a view on fundability and likely loan to value within one working day.