Semi-commercial properties are buildings that serve both a commercial and residential purpose.
Some examples of these properties include shops with flats above them or pubs that share a space with a residential home. Semi-commercial properties are traditionally found in city centres and other highly populated areas with limited space.
When it comes to securing mortgages for these types of properties, lenders treat semi-commercial properties in much the same way they treat commercial properties.
When Do Semi-Commercial Mortgages Apply?
Semi-commercial mortgages would apply only if a borrower is planning on purchasing the two different property types together, meaning both the commercial and residential portions would be part of the mortgage and be the responsibility of the mortgage holder.
We work with a group of specialist lenders who deal in semi-commercial mortgages and understand the risks associated with lending against these properties – they are willing to work with borrowers to secure terms and rates that favour both parties.
Why Do Investors Purchase Semi-Commercial Mortgages?
Semi-commercial properties are often utilized by experience and savvy residential investors. These types of properties often help to diversify their portfolio while offering higher financial yields and tenants who will agree to longer lease terms.
Residential investors also look for commercial tenants at the property to have good standing accounts and an appropriate lease – these factors can help to simplify the process for investors when they begin applying for semi-commercial mortgages. Although having good commercial tenants is a benefit, it is not a crucial aspect in order to obtain this type of mortgage.
What Types of Semi-Commercial Mortgages are Available?
A good majority of financial lenders who work in the mortgage field have stopped offering interest only mortgages due to the risk they pose to lenders. Since semi-commercial mortgages are a unique situation, there are some lenders willing to offer these terms.
We have established long-lasting relationships with our lender partners, which will offer our clients the best opportunity to secure an interest only mortgage and the best rates and terms available.
Additionally, our lender partners are able to arrange repayment only mortgages as well Loan to Value, or LTV, rates of up to 60 percent.