Semi Commercial Mortgages
Semi Commercial is a slightly different proposal to either straight commercial use or buy to let/residential. It can mean different things to different people. Usually this will involve a building with some commercial use with a part reserved for residential occupation. Often this will be a retail shop unit with a flat above but can also include bed and breakfast accommodation, pubs and restaurants, surgeries and live work units.
- Purchase or refinance for any reason
- Up to 85% of property value (100% with additional security)
- Imperfect credit history OK
- Release cash for business expansion, cash injection, purchase additional property
- Fast decisions!
- Market leading rates from lenders not available on the high street
- Pubs, Surgeries, Shops with flats etc
- 10 - 30 year terms and interest only available
.Many investors are looking to diversify from existing residential BTL portfolios and semi commercial properties can be a good first step towards the commercial market.
Business owners are also looking for premises where the living accommodation is included with the commercial area either to have lower outgoings compared to running two properties or to be easily available for running the business.
For landlords there are some benefits in this area as rents generally only increase and tenants are longer term meaning less void periods. There is also usually less involvement in the ongoing maintenance of the property. However tenants still need to be assessed carefully and the property itself will need to be in an area where there is demand for the commercial use. We have all seen retail units seemingly boarded up long term!
A number of lenders are active in this area with some now offering up to 85% LTV for suitable properties. However you will be in a much better position with more choice and likelihood of a successful outcome if you can put in say 25% of the price.
One area which can be interesting is where an element of refurbishment is taking place increasing the value which can enable the owner to realise more of the equity available at a later date. It is also increasingly common for a property to have the residential and commercial areas split enabling a BTL mortgage on the residential part with the possibility of paying down the (usually) more expensive commercial borrowing. Creative financing solutions can be important.
Leasehold Businesses
For leasehold businesses there is no bricks and mortar security and different types of specialist finance apply. See our Leasehold Finance page.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER LOANS SECURED ON IT.
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