Commercial & Semi-Commercial Mortgages
A semi-commercial mortgage is used to purchase a property of mixed-use, having both residential and commercial elements. As a result, this mortgage type can also be referred to as a mixed-use mortgage.
A commercial mortgage can be used to buy or refinance land or property intended for commercial use. As with a standard residential mortgage, capital is borrowed and secured against a property.
A commercial mortgage can be used to buy or refinance land or property intended for commercial use. As with a standard residential mortgage, capital is borrowed and secured against a property.
Do I need a semi-commercial mortgage?
Semi-commercial mortgages would be suitable for the following properties:
- Commercial units with flats
- Guest homes that are owner-occupied
- Pubs with self-contained accommodation
- Buildings with self-contained offices and flats
A semi-commercial mortgage can be used for any tenure, whether freehold or leasehold.
If the property you’re aiming to purchase has both commercial and residential elements, then you will need a semi-commercial mortgage. Lenders need to know the exact details of the property they’re lending on.
If you’ve applied for a residential mortgage, a mortgage survey would quickly establish that the property has commercial elements. For this reason alone, your application would be declined. If the property you wish to purchase is completely vacant, its registered use would indicate whether it’s residential or commercial.
It’s also important to note that the ratio of commercial to residential has no bearing. For instance, even if the property was 10% commercial and 90% residential, you’d still require a semi-commercial mortgage. If the self-contained elements have separate access, then some lenders may make an exception.
If you’ve applied for a residential mortgage, a mortgage survey would quickly establish that the property has commercial elements. For this reason alone, your application would be declined. If the property you wish to purchase is completely vacant, its registered use would indicate whether it’s residential or commercial.
It’s also important to note that the ratio of commercial to residential has no bearing. For instance, even if the property was 10% commercial and 90% residential, you’d still require a semi-commercial mortgage. If the self-contained elements have separate access, then some lenders may make an exception.
Do you require additional funds? Are you coming to an end on your existing term and looking to refinance to a longer term? Is your preferential rate come to an end and wish to get a better rate. Speak to us to discuss your options
Re-finance Your existing semi-commercial mortgage?
Commercial Mortgage Brokers
While commercial loans are offered on an unsecured basis, and often capped at £25,000, commercial mortgages let customers borrow more money on a secured basis.
As well as being used to purchase property, they can also finance property development or be used to raise capital to expand an existing business.
As well as being used to purchase property, they can also finance property development or be used to raise capital to expand an existing business.
Contact us today and allow us to provide you with a commercial mortgage finance to:
- Buy business premises
- Secure land for development ventures
- Expand an owner-occupied business
- Add to your buy-to-let portfolio
- Buy a business itself
- Raise capital on commercial premises you already own