Specialist commercial mortgage broker for businesses across Scotland

Land and Buildings Transaction Tax (LBTT) replaced Stamp Duty Land Tax in Scotland from 1 April 2015, under the Land and Buildings Transaction Tax (Scotland) Act 2013. It applies to commercial purchases and commercial leases, and Revenue Scotland administers and collects it.

Non-residential LBTT is charged in slices. Source: Revenue Scotland (revenue.scot, LBTT non-residential property). Rates as at October 2026; check the current rates before you buy.

Illustrative example. On a £500,000 freehold unit with no VAT, LBTT is £13,500, against £14,500 of SDLT on the same building in England. The return and payment are due within 30 days, beginning with the day after the effective date, and a commercial lease also needs a further LBTT return every three years. Lenders do not lend the tax, so it comes from your own funds alongside the deposit. Our guide to stamp duty on commercial property compares all four nations.

Scotland has its own legal system, Scots law, kept separate from England and Wales by the Treaty of Union 1707. That changes the purchase and the lender's security.

• Missives of sale. The contract is formed by an exchange of letters between the buyer's and seller's solicitors. Once missives conclude, the deal is binding, so your loan offer should be in place first.
• Disposition. After settlement the buyer records the disposition in the Land Register of Scotland, kept by Registers of Scotland.
• Standard security. The lender's security is a standard security. Registration in the Title Sheet of the Land Register creates the lender's real right of security. Since 1 April 2016, granting a standard security also moves the property onto the Land Register if it was not already there.

In practice this means a solicitor qualified in Scots law, and a lender whose credit process and legal panel handle Scottish security. We confirm both before the application goes in, so the property loan does not stall at the legal stage.

Scotland's economy was historically built on heavy industry: shipbuilding in Glasgow, coal mining and steel, with North Sea oil related industries important since the 1970s. The service sector is now the largest sector. Scotland is the largest financial centre in the UK outside London, and Edinburgh is home to Lloyds Banking Group, the Bank of Scotland, the Royal Bank of Scotland and Standard Life. Naming a lender describes the market; it does not mean we have a relationship with it.

Scotch whisky exports contributed £5.4 billion in 2024 and the industry supports over 41,000 jobs. Around that sit the businesses that buy their own premises: engineering and fabrication workshops, warehouses and trade counters, offices, food and drink producers, hotels and hospitality across the Highlands and islands, and professional practices such as dentists, vets and accountants. Our page on franchise and professional practice mortgages covers how lenders assess practices, and an owner-occupied hotel, pub or care home is priced as a trading business, typically 7.0 to 9.0% a year, indicative, subject to status, accounts and valuation.

For a trading company buying the property it occupies, the usual terms are:

• Loan to value: typically 70 to 75%, up to 80% for strong cases, so plan on a deposit of 25 to 30% of the price.
• Indicative rates: 6.0 to 7.5% a year for an owner-occupier mortgage, indicative, subject to status, accounts and valuation.
• Term: 5 to 25 years, with some lenders going to 30.
• Fees: arrangement fees typically 1 to 2%, plus valuation and legal fees.
• Early repayment: fixed-rate loans often carry early repayment charges, so match the fixed period to your business plans.

Affordability is the heart of it. Lenders look at the business accounts and whether trading profit covers the loan repayments with headroom, then at the directors' credit and the building as security. Our commercial mortgage calculator gives a first view of monthly repayments. If you already own the premises, remortgaging business premises can release equity or move to a better rate, typically 6.0 to 8.0% a year, indicative. Where a purchase must complete before a term loan is ready, for example at auction, short-term bridging loans at 0.70 to 0.95% a month, indicative, can fill the gap.

Our finance is for owner-occupied business property, not investment or buy-to-let loans: the business must trade from the premises. We start with the accounts, the property and the purchase timetable, then go to the market: high-street and challenger banks and specialist commercial lenders whose criteria fit the business and the building. Lender products differ on rate, fees, term and early repayment charges, so we compare them before recommending one. We prepare the case, handle the credit team's questions and keep your solicitor informed so missives and the loan offer line up.

Commercial lending to a limited company is unregulated and falls outside the Financial Conduct Authority (FCA) regulated mortgage perimeter. Where a deal would be regulated, for example lending to a sole trader or individual, or a property where the borrower or a close family member will live in part of it, we refer it to an appropriately authorised firm. We are not tax or legal advisers, so your solicitor confirms the LBTT and the title.