Investing in semi-commercial properties can be a strategic move for clients looking to diversify their portfolios and enhance rental yields.
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.
Why not leverage the expertise in Fiducia’s lender panel to find the perfect lender for your client’s unique semi-commercial property?
To discuss Fiducia Commercial Network or to apply to become an Appointed Representative email the team via by clicking this link.
