Here at Clifton Private Finance, we have a wealth of experience in arranging commercial funding for those who need finance for their mixed use property requirements.
A semi-commercial mortgage is a type of financing used to purchase or refinance properties that have both residential and commercial elements under the same roof. These are considered "mixed-use" properties.
Some common examples of semi-commercial properties include:
Semi-commercial mortgages are a hybrid between a standard residential mortgage and a full commercial mortgage. They allow more flexibility than a regular residential mortgage for mixed-use scenarios.
Owner-Occupied Commercial Mortgages
These mortgages are for business owners who want to purchase or remortgage premises they will operate their business from. Examples include:
Commercial mortgage lenders generally provide up to 75% loan-to-value (LTV) for owner-occupied mortgages.
Commercial Investment Mortgages
These are for investors purchasing commercial property with the intention of renting it out to other businesses. Popular investment properties include:
Lenders typically cap commercial investment mortgages at around 65% LTV.
There is also:
Valuing a semi-commercial property requires looking at both the residential and commercial components separately. Lenders will assess the rental values and yields for each respective use. The overall property value is then calculated based on the combined valuations, often with a slight discount applied to account for the mixed-use nature of the property. Factors like the condition, location, scale of commercial operation, and ratio of residential vs commercial space will all impact the valuation.
Most lenders require a minimum deposit of 25-30% of the property's value for a semi-commercial mortgage. However, some may go up to 75% loan-to-value (LTV) for low risk cases.
The size of deposit required depends on:
Generally, a higher deposit makes you a lower risk borrower and opens up more competitive mortgage rates.
The cost of a semi-commercial mortgage compared to a standard residential or commercial mortgage can vary significantly depending on several factors:
As pricing can fluctuate significantly between lenders and products, using an experienced commercial mortgage broker is highly advisable.
Brokers can compare the entire market to find the most competitively priced semi-commercial mortgage that fits your exact requirements and borrower profile. This professional advice ensures you do not overpay compared to the cheapest available options at any given time.
Most lenders will cap the maximum semi-commercial mortgage at 75% LTV (loan-to-value) of the property's valuation. So if the property is valued at £500,000, you could potentially borrow up to £375,000.
Your affordability and income will also be major factors in how much you can borrow. Lenders will conduct assessments to ensure you can afford the mortgage repayments, similar to a residential mortgage application.
The more rental income being generated by the commercial element, the higher the borrowing may be. But expected personal income must still meet minimum requirements.
To qualify for a semi-commercial mortgage, lenders will typically require:
Age, nationality, and previous property experience will also be assessed. Some lenders are more flexible than others on certain criteria.
Based on the figures entered, we think your second mortgage will cost:
Repayment: (Capital & Interest)
Interest Only:
This information is computer-generated. It has only been designed to give a useful general indication of costs. Make sure that you read the separate key facts lender illustration before you make a decision. To get a full mortgage quote contact us.
Due to the more complex nature of semi-commercial lending, it is highly advisable to use an experienced mortgage broker. We can:
Naturally, this ensures you access the most suitable mortgage for your circumstances, maximising your chances of approval and avoiding rejection.
Applying for a semi-commercial mortgage requires several additional steps compared to a standard residential mortgage. As an experienced broker specialising in these types of mortgages, Clifton Private Finance can guide you through the entire process:
Unless you have an up to date knowledge of the financial services industry, you may benefit from speaking with professional brokers, such as us at Clifton Private Finance. We'll help you in your search for the right semi commercial mortgage.
At Clifton Private Finance, we can provide you with a picture of the semi-commercial mortgages on the market and identify the best mortgage to meet your requirements.
Our semi-commercial mortgage brokers can provide:
I approached Clifton Private Finance to help me get a mortgage as an Expat working in the Far East. I would normally 'cut out the middle man' on something like this and try to get myself a deal directly with the banks, but I am now sold on the broker concept and wouldn't hesitate to use Clifton Private Finance again. There were a number of complicating factors such as being an expat, the stamp duty holiday, the sheer amount I wanted to borrow and the fact I wanted it all wrapped up before the Stamp Duty holiday ended. It is clear to me now that the relationship that brokers have managed to foster with their banks means they can simply pull levers and make stuff happen that us ordinary folk cannot. Put simply, they are worth every penny, will take most of the stress out of the lending process, and seem to have access to deals that you just won't find on the internet. Thank you George and Jan for all your hard work!
James M
Luther was excellent. Very clear in his advice and explanations of products and was able to move things on very quickly when we ran into difficulties with the estate agents. Without a doubt I would recommend Luther to all friends, family and colleagues. Luther was a joy to deal with and took a lot of the stress out of a troublesome transaction, from my end. I would view Luther as real asset to Clifton Private Finance Ltd.
William W
The team at Clifton Private Finance has been outstanding, not only in helping me to obtain a mortgage on a slightly unusual home, but also in continuing to provide support and liaise with the lender and solicitors through to completion. Thank you for making the process of buying my first home much easier.
Chantelle S
Sam O'Neill, and the new lender he identified for me, worked tirelessly together using my time constraints, to make sure my mortgage application was completed on time. They are a brilliant company to work with, fast, efficient, open and transparent from the very beginning, and turned a seemingly impossible situation into a viable one. Sam was brilliant throughout the whole process and I would highly recommend him, and his colleague Helen, to anyone without hesitation, I cannot speak highly enough about them.
Myr B
I was incredibly lucky to find Clifton Private Finance after a search on line as their service has been more than exemplary. My point of contact was Sam 0’Neill and he was happy to help at every stage during the application of the bridging loan, making a stressful process much easier to deal with. He was always available by phone or email and gave prompt answers to queries I had as well as always getting back to me when he said he would. That to me is excellent customer service and I cannot thank him personally or the company enough for the support they have given me.
C Jefferey
Adam cannot thank you enough for all your support throughout this arrangement. You have gone more than the extra mile to support us. Without you we would not have got our dream retirement home. You have been most professional and personable. Liz and I would be more than happy if you wanted to use us a reference with respect to any future clients.
Nigel & Liz K - Bristol
You have certainly shown me that you do everything for your clients, including tolerating their excessive emails and questions for updates. I have been kept in the loop, from yourself, about why the delays were occurring (Nationwide, post etc) which I would like to highlight that I really appreciated. I certainly will be able to recommend you to others as and when the need arises.
Mr Morris
I recently contacted Clifton Private Finance after a Google search for bridging finance providers and was immediately struck by their efficiency and support. Forms were emailed over almost immediately and the necessary finance was arranged within a few days. None of the other companies I contacted came close to their professionalism, and the quote that I eventually received was impressive. Thank you Adam, your help has enabled us to reserve the house that we wanted and I certainly recommend you to others.
Mr M. R. - Oxford
Absolutely brilliant. The service was first class, got everything sorted efficiently and were always friendly. Any fees were negligible compared to the service offered. Robert was particularly outstanding.
Charles N
My advisor, Robert, was very helpful in finding the mortgage to suit me. He kept me up to date throughout the process and dealt with any issues when they arose.
Rowena C
