Shetland is an archipelago between Orkney, the Faroe Islands and Norway, the northernmost region of the United Kingdom. Only 16 of about 100 islands are inhabited, and the population totalled 22,710 in 2025. Lerwick, capital since 1708, is the largest settlement and only burgh; Scalloway on the west coast was the capital before it. The islands are reached only by ferry or air, through Sumburgh Airport and the port at Lerwick.
We arrange business mortgages for trading companies anywhere in Shetland that want to buy or refinance their own premises. We are a broker, not a lender, and we put each case to the lenders whose criteria fit. This is finance for a business's working building, not a residential mortgage.
Which island premises suit an owner-occupier mortgage in Shetland?
Wikipedia lists the main revenue producers as agriculture, aquaculture, fishing, renewable energy, oil and gas, the creative industries and tourism. Fishing remains central, with new fish markets in Lerwick and Scalloway and plans to expand aquaculture in Yell. Oil and gas were first landed at Sullom Voe in 1978, and in August 2024 the first part of the Viking Wind Farm connected Shetland to the mainland National Grid for the first time through a 600 MW link. In Unst, SaxaVord Spaceport is a rocket launch site.
Those industries generate demand for practical buildings: fish processing and cold stores, marine engineering and boat repair yards, warehouses and fabrication workshops, plus shops, guest houses and offices in Lerwick. Our page on owner-occupier mortgages covers how lenders assess a company buying the building it uses.
Shetland's island trades, from crofting to aquaculture
ONS UK Business Counts 2026, local units.
Show as a table
| Sector | Businesses | Shetland Islands share | UK share |
|---|---|---|---|
| Farming, forestry and fishing | 700 | 36.4% | 4.5% |
| Construction and building trades | 210 | 10.9% | 12.5% |
| Professional, scientific and technical | 145 | 7.5% | 13.9% |
| Retail | 110 | 5.7% | 9.3% |
| Manufacturing and engineering | 95 | 4.9% | 4.3% |
| Business support services | 85 | 4.4% | 8.1% |
| Transport, logistics and storage | 80 | 4.2% | 4.2% |
| Health and social care | 70 | 3.6% | 5.5% |
| Restaurants, cafes and pubs | 60 | 3.1% | 6.2% |
- 135.6xfishing and aquaculture320 businesses
- 4.7xfarming380 businesses
- 3.0xpublic administration45 businesses
A figure of 2.0x means the trade makes up twice the share of local businesses that it does across the UK.
No economy in the UK looks quite like Shetland's. Farming, forestry and fishing make up 36.4% of the islands' 1,940 business units, eight times the UK share of 4.5%, and fishing and aquaculture firms are well over a hundred times as common as nationally. No business on the count employs 250 or more staff, and 85% are micro firms.
Manufacturing and engineering, at 4.9%, edges above the national figure too. For a company buying a shed or processing unit at Sella Ness, the valuer will find few local comparables, so a lender is likely to lean more heavily on the business's own trading record and on how specialised the building is.
How do ferries and flights shape commercial property finance in Shetland, Scotland?
NorthLink Ferries runs the overnight service from Lerwick to Aberdeen, which takes about 12 hours, with some sailings calling at Kirkwall. Loganair flies from Sumburgh to Kirkwall, Aberdeen, Inverness, Glasgow and Edinburgh, and Tingwall handles inter-island flights to Fair Isle and Foula. Shetland Islands Council runs the inter-island ferries.
For lending, that isolation cuts two ways. A well-placed building in Lerwick or beside a harbour serves a captive local market. But a lender knows the pool of buyers for a remote or highly specialised property is small, so valuations can be conservative and loan to value may be lower than on the mainland. Valuers and solicitors may also need to travel, which adds cost and time.
Shetland sites at Sella Ness and Ollaberry
Named estates and parks listed on Google Maps near Shetland Islands, October 2026. Listed to show where premises trade locally; we have no connection with the owners or agents.
- Sella Ness Industrial EstateShetland ZE2 9UR
- Ollaberry Industrial EstateShetland ZE2 9RU
What do LBTT and Scots law mean for business property loans in the Shetland archipelago?
Shetland is in Scotland, so Land and Buildings Transaction Tax applies. Revenue Scotland charges 0% on the first £150,000 of a non-residential price, 1% from £150,001 to £250,000 and 5% above £250,000 (rates as at October 2026; check the current rates before you buy). Our guide to commercial stamp duty sets the bands out in full.
The purchase is agreed by missives, and the lender takes a standard security registered with Registers of Scotland. Indicative pricing is 6.0 to 7.5% a year for owner-occupiers and 7.0 to 9.0% for hospitality, subject to status, accounts and valuation, with arrangement fees of about 1 to 2%.
Illustrative example. A marine engineering company buys a harbourside workshop for £450,000. A 75% loan would be £337,500 and the deposit £112,500. LBTT is £11,000, so the cash required is about £123,500 before fees. A lender may offer less than 75% if it judges the building specialised.
Planning is handled by Shetland Islands Council. A limited company borrowing against its own premises is outside the FCA's regulated mortgage perimeter; where living accommodation for you or family is involved, or the borrower is a sole trader, we refer the case to an appropriately authorised firm. See our Scottish business mortgages page for the national picture.
Owner-occupier lending across the islands
Lerwick
The capital and largest settlement, with about half of Shetland's people living within 10 miles of it. Its port, fish market, shops, offices and hospitality businesses make it the main place where trading companies buy premises, from harbourside sheds to town-centre shops.
Scalloway
Capital until 1708 and now home to one of the new fish markets, Scalloway on the west coast is a working harbour village. Seafood, aquaculture and marine service businesses are the natural buyers of property here.
Sullom Voe and the north Mainland
Oil and gas were first landed at Sullom Voe in 1978, and it grew into one of Europe's largest terminals. Engineering, fabrication and support firms serving energy work look for yards, workshops and storage buildings in this part of the Mainland.
Unst
The most northerly inhabited island is home to SaxaVord Spaceport and the PURE wind-hydrogen research project run by the Unst Partnership. Premises here are few and specialised, so a lender will look closely at use and resale before agreeing terms.
Yell
Yell lies north of the Mainland, and plans to expand aquaculture there feed into the islands' biggest industry. Processing sheds, stores and marine workshops for salmon and shellfish businesses are the typical premises.
Sumburgh
At the southern tip of the Mainland, Sumburgh Airport is the main air link with Scotland. Aviation support, car hire and visitor businesses buy premises near it, although the small local market means valuations tend to be cautious.
