The fees, one by one
| Fee | Typical | Paid when | Negotiable? |
|---|---|---|---|
| Arrangement (lender) | 1% to 2% of the loan; 1% is common for good cases | Completion; usually added to the loan | Sometimes, on larger loans |
| Valuation | £750 to £5,000+; more for specialist or trading property | Up front, non-refundable | No, but you can ask for a panel valuer quote |
| Lender's legal fees | £1,000 to £3,000 | Completion | Rarely |
| Your solicitor | £1,000 to £3,000 plus searches and disbursements | Completion | Yes; get two quotes from commercial property solicitors |
| Broker / adviser | 0.5% to 1% of the loan, or a fixed fee; some are paid by the lender only | Completion (sometimes a small commitment fee at offer) | Ask how they are paid |
| Early repayment charge | 3% to 5% in year one, stepping down; often nil on variable rates after year one or two | If you repay early | Ask for a shorter or lower schedule |
| Commitment / exit fee | 0% to 1% | Offer or redemption | Push back; not all lenders charge |
| Survey (if separate from valuation) | £500 to £2,000 | Before exchange | Optional but sensible on older buildings |
Stamp duty on commercial property
Non-residential rates apply, and they also apply to mixed-use property. England and Northern Ireland: 0% up to £150,000, 2% from £150,001 to £250,000, 5% above. Scotland (LBTT): 0% to £150,000, 1% to £250,000, 5% above. Wales (LTT): 0% to £225,000, 1% to £250,000, 5% to £1 million, 6% above. There is no first-time-buyer relief and no additional-property surcharge. If VAT is charged on the purchase (the seller has "opted to tax"), stamp duty is charged on the VAT-inclusive price. The costs calculator does the sums.
VAT
Many commercial properties are sold with VAT at 20% because the seller opted to tax. A VAT-registered buyer usually reclaims it, but has to fund it at completion (bridging or a VAT loan covers the gap for weeks). A non-VAT-registered buyer, or a pension scheme, cannot reclaim it. Ask early; it changes the deposit you need.
A budget for a £400,000 purchase with a £280,000 loan
| Deposit (30%) | £120,000 |
| Stamp duty (England) | £9,500 |
| Arrangement fee 1.5% (added to loan) | £4,200 |
| Valuation | £1,800 |
| Legal, both sides | £4,000 |
| Broker 0.75% | £2,100 |
| Cash to find (excluding the fee added to the loan) | about £137,400 |
A note on the numbers. Rates, loan-to-value limits, fees and criteria are typical figures at the time of writing (2026). Commercial lending is priced case by case, so your own terms depend on the property, the business, the tenant and you. This is information, not advice, and not an offer of finance.
Quick answers
Can the arrangement fee be added to the loan?
Usually, as long as the total stays within the lender's LTV limit. You pay interest on it for the term, so if cash allows, paying it is cheaper.
Do I pay the broker if the loan doesn't complete?
Most charge only on completion, some charge a modest fee at offer stage. Ask before you instruct, and get it in writing.
Ready to talk to someone who can actually arrange it?
Tell us about the property and the business, and a commercial finance adviser will come back with which lenders fit, what rate to expect and what they'll want to see. No fee for the conversation, no obligation.