01
What It Means
The loan-to-value limit lenders apply to commercial property such as offices, retail units and warehouses.
02
Why It Matters
Commercial property is usually financed at lower LTVs than residential property, and lenders look closely at the property type, location, tenancy and income it generates.
03
Simple Example
A business owner releasing capital against a warehouse should expect a lower maximum loan, as a percentage of value, than against a villa of the same value.
Related Terms
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