Semi Commercial Mortgage Options

shopwithflatSemi Commercial properties are treated by most lenders as Commercial properties. At Ravenwood we have some specialist lenders that understand the risks in lending against such properties.

As a result the terms and the rates can be more favourable. Examples of semi commercial are a shop with a flat above or a part pub part residential property.

A semi commercial mortgage would apply when re financing or buying both properties – eg the shop and the flat. Experienced residential investors often diversify into part residential part commercial properties in the search of yield and longer term tenants.

If the tenant of the commercial part of the property has good accounts and appropriate lease this can help the process of getting the mortgage, but this is not crucial by any means.

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Interest Only Semi Commercial Mortgages

Even though much of the mortgage market has stopped doing interest only mortgages, we have some lenders that can do interest only on some semi commercial properties.

Semi Commercial Mortgage lenders

As of winter 2014, Ravenwood have six lenders offering finance on semi commercial property.  Some of them are repayment only.  Some of them will only go as far as 60% LTV (loan to value).

Title Separation and separate entrances

If your able to do some building works so the residential part of the property has its own separate entrance, it maybe possible to get a solicitor to help you separate the titles.  Then you could consider putting normal residential finance or Buy to Let finance on the residential title part of the property (likely a leasehold property) and put a commercial mortgage on the commercial property. It could even pay to put more leverage in the residential leasehold property and leave the more difficult to finance commercial property unencumbered.

Part residential part commercial mortgage

This is what we specialise in! More examples of property include but are not limited to:

  • Public Houses with owner occupied accommodation
  • Care homes with owner accommodation
  • Some agricultural properties
  • Guest houses and Hotels with landlord accommodation forming part of the B&B or Hotel
  • Residential property with commercial units or workshops included on the same title
  • Homes of multiple occupancy with retail shop at street level and flats above a ground floor shop
  • Residential property including Holiday Let annex flat on the same title