Retrofit Finance for Commercial Landlords

Retrofit broadly means upgrading an existing building's performance - typically through a combination of fabric improvements (insulation, windows, doors), mechanical upgrades (HVAC, heating systems), electrical improvements (lighting, controls), and potentially renewable energy installations. 

It's usually a programme of works rather than a single measure.

Costs vary significantly depending on building size, condition, and the scope of works. Light-touch retrofits (lighting, controls, basic insulation) might start around £30,000-£50,000. Deep retrofits involving fabric, mechanical and electrical works on larger buildings can run into several hundred thousand pounds. 

Your contractor's specification will give you the specific figure.

Yes. Some retrofit programmes are delivered in phases - perhaps starting with quick-win measures like lighting, then progressing to more complex works like HVAC or fabric improvements. Finance can be structured to accommodate phased delivery, though the specifics depend on the programme and lender.

Yes. Buildings with a mix of commercial and other uses can be considered for retrofit finance. The key factors are the business profile, the commercial case for the improvements, and the overall project scope rather than the specific building use class.

Retrofit finance is specifically for improvement works - it's project finance rather than property finance. It sits alongside your existing property arrangements rather than replacing them. The amount is based on the cost of the improvement works and the projected benefits, not the property value.

No. You can start with one property or a subset of your portfolio. However, if you're planning improvements across multiple properties, structuring them together in one finance facility can be simpler and may present a stronger commercial case. 

There's no pressure either way.

Usually, yes. Retrofit finance is typically structured as a separate facility from existing property finance (mortgages, etc.). The two sit alongside each other. We'll need to understand your existing arrangements, but having a mortgage on the property doesn't prevent you from funding improvement works.

Typically: the specification of works (from your contractor or consultant), projected outcomes (energy savings, EPC improvement, compliance benefits), cost breakdown, company accounts, and basic business information. The more detailed the specification, the stronger the case.

It depends on project complexity and how complete your specification is. Straightforward projects with clear specifications can sometimes complete within 3-4 weeks. More complex multi-measure programmes may take longer, particularly if the specification is still being finalised.

In some cases, yes - professional fees associated with the improvement programme can be included within the finance facility. This depends on the lender and the overall project structure. 

It's worth mentioning when we talk if this is relevant to your situation.

Not at all. Retrofit programmes typically involve several contractors covering different trades (insulation, mechanical, electrical, renewables). The finance covers the overall programme regardless of how many contractors are involved in delivery.