Office Commercial Mortgages Bournemouth

Underwriting a Bournemouth office commercial mortgage

The Bournemouth office estate splits into three practical tiers. Lansdowne business district is the financial-services anchor, JPMorgan Chase's Littledown campus is the largest single occupier with c. 4,000 to 5,000 staff across BCP, and the wider Lansdowne crescent runs professional-services and back-office occupation that supports both investment and owner-occupier deals. Richmond Hill and Madeira Road covers the older town-centre office stock east of The Square, mixed Victorian conversion and 1980s-1990s blocks, professional-services and SME-led occupation. Holdenhurst Road and BH8 fringe covers the office stock fanning east towards Boscombe and Charminster, mid-quality and predominantly small-floorplate owner-occupier territory.

Investment underwriting tests ICR at 140 to 165%. Lenders read three signals first: tenant covenant, EPC rating and unexpired lease term. MEES has bitten hard since April 2023, lettable assets must hit EPC E minimum, and most institutional lenders now want EPC B or better on new investment loans to forward-protect against the 2030 EPC B regulation. A 1990s Madeira Road block at EPC D with mid-covenant tenancies prices materially wider than a modern Lansdowne floorplate at EPC B with a JPMorgan-orbit professional-services covenant on a 10-year FRI.

Worked example: a Lansdowne office let to a regional professional-services firm on a 7-year FRI, £1.4M valuation, £105K passing rent, EPC C. ICR at 150% on a 7.5% pa stressed rate sizes the loan to roughly £935K, about 67% LTV. Lloyds, NatWest, Barclays all compete on this profile, with Santander and HSBC also active where the covenant is recognised. Worked example two: a Holdenhurst Road converted-Victorian office block, multi-tenant, EPC D, three-year average tail, £475K valuation. ICR pulls the loan to 60% LTV and the rate sits at 8.0 to 8.5% pa with Shawbrook, Allica Bank or InterBay Commercial.

For owner-occupier office finance where the borrower's business will trade from the property, see the owner-occupier commercial mortgage page. For office-to-residential conversions, common across the Lansdowne BH1 fringe under Class E to C3 permitted-development, see the mixed-use page.

Finance structures for Bournemouth office

Investment underwrites on ICR against the lease and covenant. Owner-occupier underwrites on EBITDA cover where the borrower's business trades from the property. Vacant or repositioning office routes through bridge with a Class E to C3 permitted-development exit (office-to-residential) where the planning allows.

Lender appetite for Bournemouth office

Strongest pricing on Lansdowne prime with national or strong professional-services covenant, EPC B or better, WAULT over seven years, where <strong>Lloyds</strong>, <strong>NatWest</strong>, <strong>Barclays</strong> and <strong>Santander</strong> all compete at 6.5 to 7.5% pa at 60 to 65% LTV. The institutional desks treat the JPMorgan-orbit Lansdowne professional-services covenant pool favourably. Mid-strength on Richmond Hill and modern Madeira Road investment, where Allica Bank, <strong>Shawbrook</strong>, HTB, Cambridge & Counties and YBS Commercial compete at 7.5 to 8.5% pa at 65 to 70% LTV. Tighter on EPC D and below, on Holdenhurst Road suburban stock and on multi-tenant blocks with short tail, where <strong>InterBay Commercial</strong> and <strong>LendInvest</strong> are the realistic desks at 8.5 to 9.0% pa. Office-to-residential conversion routes through bridge with <strong>LendInvest</strong>, Together, OakNorth and Octopus Real Estate the most active on south-coast PD-exit structures.