Semi Commercial Mortgages and Property Finance
A semi commercial mortgage is used for properties that combine both residential and commercial elements, such as a shop or office with living accommodation above.
These properties are often used by investors or business owners looking to benefit from income generated from both parts of the building, sitting between traditional buy to let and full commercial investments within a wider semi commercial property finance strategy.
From a lending perspective, semi commercial mortgages fall into a more specialist area of the market. Lenders will typically assess the split between residential and commercial use, tenant type, lease structure, rental income, and overall property risk.
Because of this, not all mixed-use properties will meet standard lender requirements, particularly where the commercial element is more complex or the residential proportion falls outside typical limits. Structuring the deal correctly and understanding how lenders approach semi commercial property finance can improve the chances of securing funding.