Private Mortgage Lender for Vacant Commercial Property Finance

Banks assess commercial property loan serviceability against rental income. A vacant asset produces no income, which means no bank serviceability calculation can pass, regardless of how strong the asset or the borrower may be. That is a policy constraint, not a credit judgement. Private lending sits outside that framework. We assess the security value, the borrower entity, and the exit strategy, not the income stream from a vacant building.

Who This Is For

• •Investors purchasing vacant commercial assets at a discount, with a clear re-letting or sale plan
• •Borrowers whose tenanted property has become vacant during the loan process and the bank has withdrawn approval
• •Purchasers in time-critical settlements where the vacancy has caused a bank to withdraw or delay
• •Available to Pty Ltd companies, family trusts, and SMSFs — not available to individuals in personal name or for residential property or consumer lending

How We Assess Vacant Commercial Property

Our assessment centres on three elements: the security value of the vacant property as determined by our in-house valuers, the borrower entity's capacity to hold the asset and service the loan during the term, and the exit strategy. We do not require a lease to be in place before we can make a credit decision. For owner-occupiers, the exit is typically the borrower settling into the property and refinancing to a long-term lender. For investors, the exit is typically re-leasing and refinancing, or sale.

LVR for vacant commercial property is assessed against the vacant possession value, not an income-capitalisation value. In some cases, particularly strong industrial or retail assets in high-demand locations, the vacant possession value closely tracks the tenanted value. In thinner markets, the LVR may be assessed more conservatively. Our valuers assess each asset directly.

Submit your scenario with the property type, location, proposed LVR, and your intended use or exit plan. Same-day indicative response. Letter of offer within 24 hours of agreed terms. Settlement from 24 to 72 hours for clean deals.

Three Vacant Commercial Property Scenarios We Have Recently Helped

A Pty Ltd company identified a vacant freestanding retail premises in a suburban Melbourne strip. The prior tenant had vacated at lease end. The purchase price reflected the vacancy discount. The company intended to operate its own retail business from the premises. No bank would assess serviceability without a lease. We lent on the asset quality and the company's operational plan. Loan: $1.4 million, first mortgage, 65% LVR, 9-month term.

A family trust was purchasing an industrial unit in a Western Sydney estate where the vendor's tenant had given notice mid-sale. The trust's bank withdrew conditional approval two weeks before settlement, citing vacancy. We stepped in with a 12-month facility, assessed on the unit's location and the trust's ability to re-lease or sell within the term. Loan: $2.2 million.

An SMSF trustee company purchased a vacant office suite in a professional precinct. The member's accounting practice intended to occupy the space as business real property. The superannuation fund's bank required a signed lease from the member's company before it would proceed, creating a circular requirement. We funded the acquisition under the LRBA structure and the member's company took occupation within the month. Loan: $780,000.

Speed and Process Advantage

We hold direct credit authority and use in-house valuers who can assess vacant commercial property on its physical merits rather than income multiples. No external committee. Indicative position the same day you submit a scenario. Letter of offer within 24 hours of agreed terms. Settlements from 24 to 72 hours for clean deals. For borrowers who have lost bank approval due to vacancy, or who are purchasing a vacant asset in a time-critical settlement, our process runs where bank processes cannot.

"Vacant commercial property is one of the clearest examples of where private lending's asset-based assessment model creates an outcome that a bank's income-driven model cannot. The property has value, the borrower has equity, and the plan to lease or occupy is credible. Banks cannot pass their serviceability test on a vacant building; we simply assess what the property is worth and whether the LVR is within our comfort zone."

Gino Tabila

Associate Director

Benefits of Using a Private Mortgage Lender for Vacant Commercial Property

Vacant commercial property sits in a category that banks will not fund — full stop. No rental income means no serviceability, and no serviceability means no bank loan, regardless of asset quality. A private mortgage lender removes that constraint entirely and assesses the deal on what actually matters: the property value, the LVR, and the borrower's plan.

• •No rental income required — vacancy does not disqualify an otherwise strong asset
• •Assessment based on vacant possession value, not income-capitalisation methodology
• •Owner-occupiers, investors re-leasing, and opportunistic buyers all eligible
• •Settlement within 24 to 72 hours — move on vacant stock before competing buyers
• •Industrial, retail, office, and mixed-use vacant commercial all assessed

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