Refinancing a commercial portfolio is not the same as refinancing a single asset. The complexity compounds across different lenders, maturity dates, LTV positions, and — increasingly in 2026 — different EPC profiles. A single lender rarely accommodates the full picture. The solution is usually a combination of facilities, sequenced correctly to achieve the overall objective without triggering adverse consequences on any individual asset.
📊 The current market for portfolio refinancing in 2026
Lender competition for quality commercial portfolios of £5M+ is strong. Challenger banks and specialist lenders have stepped into gaps left by high street banks, which have pulled back from secondary retail, hospitality, and more complex structures. Well-performing portfolios with strong occupancy and good EPC ratings are attracting multiple term sheets.
Pricing has softened from the 2023–2024 peak, and well-structured larger portfolios are accessing materially better terms than smaller or more complex facilities. Most lenders now require debt service cover ratios of 125% to 150% — a more rigorous bar than many portfolio owners experienced at their last refinance.
🏢 Where complexity concentrates
Mixed EPC ratings — lenders are applying lower LTVs and higher margins to sub-EPC C assets. Segmenting the portfolio across lenders by asset quality is often the right approach, and most lenders now expect a credible pathway to compliance, not just current status.
Covenant breach on one asset — one underperforming asset does not have to infect the refinancing of the whole. Isolating it on a short-term bridge while the others refinance onto term products is cleaner.
Simultaneous acquisition — if equity release is needed to fund a purchase, a bridging facility on unencumbered assets can provide liquidity while the term refinancing completes in parallel.
💡 The structure question matters more than the rate question
The best outcomes come from preparation — addressing EPC positions early, documenting income clearly, and approaching the right lenders in the right sequence.
If you are a commercial portfolio owner looking to refinance, restructure, or release equity — and the picture is anything other than straightforward — we would welcome the conversation.
Message us directly or visit https://rosehillcapital.co.uk to discuss
Leave a Reply