Warehouse 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.
How the warehouse 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 a warehouse
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 warehouse and industrial deals land between 65 and 75 percent loan to value for an investment, with owner-occupiers sometimes reaching higher against the trading business. If you want to model the monthly cost as well, use our commercial mortgage calculator.
Worked example
On a 1 million pound warehouse 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 tenant.
Warehouse deposit and LTV calculator: common questions
How much deposit do I need to buy a warehouse?
On most commercial mortgages a warehouse needs a deposit of about a quarter to a third of the price, because lenders fund around 65 to 75 percent loan to value. On a 1 million pound unit at 70 percent that is a 300,000 pound deposit. Move the loan to value slider in the calculator to see how the deposit changes.
What is loan to value on a commercial property?
Loan to value is the loan as a percentage of the property price or valuation. A 70 percent loan to value on a 1 million pound warehouse 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 a warehouse?
Sometimes. Owner-occupiers trading from the unit can occasionally reach 80 percent or more against the business, and additional security or a strong tenant can lift the figure. For an investment let on a single tenant, 65 to 75 percent is the usual range. Send us the deal and we will give a realistic view.
Want a real view on your deposit?
Send us the warehouse and we will come back with a view on fundability and likely loan to value within one working day.