Commercial Mortgages Explained: Borrowing for Clubs, Gyms & Athlete Ventures

Whether you’re a sports professional looking to invest in your own gym, a club seeking to purchase new facilities, or an entrepreneur wanting to open a sports venue, understanding commercial mortgages Warrington can be the key to turning your vision into reality.

Working alongside our sister company Evolve Commercial Finance, we’ve helped numerous clients across the Northwest secure commercial finance for their sporting ventures. Let’s break down everything you need to know about commercial mortgages and how they could help you achieve your business goals.

What is a Commercial Mortgage?

A commercial mortgage is a loan secured against commercial property – premises used for business purposes rather than residential living. Unlike residential mortgages you might be familiar with, commercial mortgages are specifically designed for purchasing or refinancing business properties.

For sports professionals and entrepreneurs, this could include:

• Gyms and fitness centres
• Sports clubs and facilities
• Physiotherapy clinics
• Sports retail premises
• Training academies
• Leisure centres
• Mixed-use developments with commercial space

Why Consider a Commercial Mortgage?

If you’re an athlete thinking about life after sport, or a club looking to expand, commercial property ownership offers several advantages:

Building Equity: Rather than paying rent to a landlord, your mortgage payments build equity in an asset you own.

Business Security: Owning your premises provides long-term stability and security for your business operations.

Income Generation: Properties can be let to generate rental income, creating an additional revenue stream.

Capital Growth: Commercial property can appreciate over time, providing potential returns on your investment.

Tax Benefits: Interest on commercial mortgages may be tax-deductible as a business expense.

For athletes securing their first property, commercial investment can be an excellent way to diversify your portfolio and plan for post-career income.

Types of Commercial Finance Available

When it comes to commercial finance Warrington businesses can access several different products:

Commercial Mortgages

These are the traditional route for purchasing commercial property, typically offering:

• Loan terms from 5 to 25 years
• Loan-to-value ratios up to 70-75% (meaning you’ll need a 25-30% deposit)
• Interest rates slightly higher than residential mortgages
• Repayment or interest-only options

Development Finance UK

If you’re planning to build, convert, or significantly refurbish a property, development finance might be more appropriate. This type of funding:

• Releases funds in stages as the project progresses
• Typically covers 60-70% of the gross development value
• Has shorter terms (usually 12-24 months)
• Features higher interest rates reflecting the increased risk
• Can fund everything from ground-up builds to major renovations

Development finance is particularly useful for clubs looking to expand facilities or entrepreneurs converting existing buildings into gyms or sports venues.

Bridging Loans for Clubs

Sometimes opportunities arise that need quick action – perhaps a neighbouring property comes on the market that would be perfect for expansion, or you need to secure premises before another buyer does. This is where bridging loans for clubs can help.

Bridging finance provides:

• Quick access to funds (often within days)
• Short-term solutions (typically 1-18 months)
• A “bridge” until longer-term finance is arranged
• Flexibility for time-sensitive opportunities

Buy-to-Let Commercial Mortgages

If your plan is to purchase commercial property to rent out (perhaps you’re an athlete looking to build an investment portfolio), a commercial buy-to-let mortgage could be ideal. Lenders will typically assess the rental income the property can generate rather than just your personal income.

Who Can Get a Commercial Mortgage?

Commercial mortgages Warrington lenders will consider applications from:

• Limited companies
• Sole traders
• Partnerships
• LLPs (Limited Liability Partnerships)
• Sports clubs and associations
• Individuals purchasing investment property

For sports professionals, your unique income structure doesn’t have to be a barrier. Lenders increasingly understand athletes’ earnings, including bonuses, sponsorships, and image rights. However, you’ll typically need:

• A solid business plan
• Evidence of income and affordability
• A substantial deposit (usually 25-30%)
• Good credit history
• Relevant business experience or qualifications

The Commercial Mortgage Application Process

Securing commercial finance involves several steps:

1. Initial Assessment: We’ll discuss your needs, examine the numbers, and determine which type of finance suits your situation.
2. Preparing Documentation: This includes business plans, financial projections, proof of deposit, and details about the property.
3. Property Valuation: The lender will arrange for the property to be professionally valued.
4. Underwriting: The lender assesses the application, examining both your ability to repay and the property’s suitability as security.
5. Completion: Once approved, legal work is completed and funds are released.

The process typically takes 4-8 weeks for standard commercial mortgages, though bridging loans can be faster.

Key Considerations for Sports Facilities

If you’re specifically looking at gyms, clubs, or other sports facilities, there are additional factors to consider:

Location Analysis: Footfall, parking, accessibility, and local competition all impact viability.

Equipment Costs: Remember that the mortgage covers the property – you’ll need additional funds for equipment, fit-out, and initial operating capital.

Operating Costs: Business rates, insurance, utilities, and maintenance can be substantial for larger premises.

Revenue Projections: Lenders want to see realistic membership or usage projections demonstrating the business can sustain mortgage payments.

Specialist Requirements: Some sports facilities may need specific planning permissions or building regulations compliance.

Why Work with Specialists?

Navigating commercial finance can be complex, which is why working with advisers experienced in commercial mortgages Warrington makes such a difference. Through our commercial finance services, we can:

• Access specialist lenders who understand sports businesses
• Negotiate better rates and terms
• Streamline the application process
• Provide guidance on the most suitable finance type
• Support you through to completion

We’ve built strong relationships with lenders across the commercial finance market, including those who specialise in leisure and sports facilities.

Planning for the Future

Whether you’re an athlete planning for life after sport, a club looking to secure your own premises, or an entrepreneur with a vision for a new sports facility, commercial property can be an excellent investment. The key is getting the right advice and the right finance structure from the start.

At Home Financial, we’re passionate about supporting our local community and helping sports businesses thrive. Based right here in Warrington, we understand the local market and have the expertise to guide you through the commercial finance process.

Ready to explore your options? Contact our team today to discuss how we can help turn your commercial property ambitions into reality. From initial consultation to completion, we’re here to support you every step of the way.

FAQs

1. How much deposit do I need for a commercial mortgage?

Most commercial mortgages require a deposit of 25-30% of the property’s value, though this can vary depending on the lender, the type of business, and your financial circumstances. Some specialist lenders may consider higher loan-to-value ratios (meaning smaller deposits) for strong applications with established businesses, but expect to put down at least a quarter of the purchase price.

2. Can I get a commercial mortgage if I’m still playing professional sport?

Absolutely! Many professional athletes successfully secure commercial mortgages. Lenders will consider your contract length, overall income including bonuses and sponsorships, and your business plan. Having a co-applicant with complementary experience or demonstrating relevant qualifications (like sports science or business management) can strengthen your application. Working with advisers who understand sports professionals’ finances is essential.

3. What’s the difference between commercial mortgages and development finance?

Commercial mortgages are designed for purchasing existing, ready-to-use commercial properties, with long repayment terms (typically 5-25 years) and lower interest rates. Development finance UK products are short-term loans (usually 12-24 months) specifically for building or significantly refurbishing properties, with funds released in stages as work progresses. If you’re buying a gym that’s ready to operate, you’d need a commercial mortgage. If you’re converting a warehouse into a sports facility, development finance would be more appropriate. Some projects might use development finance initially, then refinance onto a commercial mortgage once complete.