Semi-Commercial Properties: Diversity on the High Street and in the Property Portfolio

These properties, often found on our high streets, typically combine retail, restaurant, or financial service ground floor units and spaces with residential units above.

The split between commercial and residential elements is crucial for lenders. The larger the residential component – whether in value, income, or square footage – the higher the Loan-To-Value (LTV) ratio available.

For instance, some lenders require over 60% of the property value to be residential, while others need more than 51% of the square footage to be residential.

Additionally, some lenders may offer residential Buy-To-Let (BTL) rates if the residential rental income covers the commercial mortgage requirements.

This diversity in property types means there’s significant lender interest in

semi-commercial investments. Each property is unique, much like our high streets, and there’s a lender for every type.

By understanding the specific requirements of different lenders, commercial finance brokers can match clients with the most suitable financing options, ensuring a tailored approach to each investment.