A Semi-Commercial Investment Mortgage is designed for investors looking to purchase or refinance mixed-use properties that comprise both commercial and residential elements within a single building. Common examples include shops with flats above, mixed-use high street properties, and buildings combining commercial premises with residential accommodation.

Semi-commercial properties offer investors the potential to diversify income streams through both commercial and residential tenants. However, lender appetite and assessment criteria can vary significantly, making specialist advice particularly valuable.

Key Benefits

• Access to both commercial and residential rental income streams.
• Can be used for property purchase, refinancing, or portfolio restructuring.
• Potential for attractive yields and long-term capital growth.
• Suitable for experienced investors and those looking to diversify their property holdings.

Lender considerations include:

• The commercial and residential split of the property and how it is assessed (floor area, value, or rental income apportionment).
• Rental income strength across both elements of the property.
• Tenant quality, covenant strength, and lease terms.
• Property type, location, and market demand.
• Loan-to-value (LTV) and overall exposure limits.
• Investment experience and track record of the borrower.
• Complexity of the mixed-use structure and overall asset manageability.
• Stability and sustainability of combined income streams.

Given the varying approaches adopted by lenders, securing the right finance solution often requires careful lender selection and a thorough understanding of the property's mixed-use characteristics.