Commercial and semi-commercial property
Our commercial mortgage broker service covers business premises such as offices, shops and warehouses, plus semi-commercial mortgages for mixed-use property such as a shop with a flat above. Harry is our commercial and semi-commercial specialist and searches lenders across the market for those whose criteria fit your situation.
Free, no-obligation call
A commercial property is used entirely for business, while a semi-commercial property mixes business and residential use, such as a shop with a flat above. For a property to count as semi-commercial, lenders usually need at least 40% of its value to be residential.
Buy or refinance premises your own business trades from, or property you let to business tenants as an investment. Lenders look at your business accounts and trading history, or the rent, the tenant and the lease.
Buy or refinance a building with both commercial and residential parts. Because the residential part is seen as lower risk, semi-commercial mortgages can come with slightly better rates than fully commercial ones.
| Commercial | Semi-commercial | |
|---|---|---|
| Use | Entirely business | A mix of business and residential |
| Residential split | None | Usually at least 40% of the value must be residential, and some lenders require more |
| Rates | Usually higher than residential mortgages | Can be slightly lower than fully commercial |
| Choice of lenders | A much smaller pool than buy-to-let | A much smaller pool than buy-to-let |
| Regulation | Not usually regulated by the FCA | Can be regulated if you or a family member will live in the residential part |
Splits, rates and criteria depend on the individual lender, the property and your circumstances.
Commercial lenders look at the property, the income it produces or the business behind it, and the people involved. There are far fewer commercial and semi-commercial lenders than buy-to-let lenders, and each has its own appetite, so knowing which ones suit your property really matters.
Criteria depend on the individual lender, the property and your circumstances.
One case I arranged was a commercial remortgage on a gym unit. The owner wanted to refinance the whole unit and release extra money to carry out further work on the property.
Cases like this depend on the property, the business and each lender’s criteria, so I start by understanding what the money is for and how the business is performing. From there, I can tell you which lenders are likely to look at it.
Harry Mansell, CeMAPMortgage Specialist, Keyholder Mortgages
Based on real client cases, with personal details withheld. What’s possible depends on your circumstances and each lender’s criteria.
Quick answers to the questions business owners and investors ask most. Everything depends on the lender, the property and your circumstances. Need to move quickly on a purchase? See our bridging loan broker page. Letting residential property instead? See our buy-to-let mortgage broker page.
A commercial mortgage is a loan secured against property used entirely for business, such as offices, shops, warehouses or industrial units. It can be used to buy premises for your own business or to invest in property you rent out to business tenants. Criteria depend on the lender and your circumstances.
The difference is how the property is used. Commercial covers premises used entirely for business, and semi-commercial covers mixed-use property with both business and residential parts, such as a shop with a flat above. Lender choice and criteria differ between the two.
Lenders usually need at least 40% of the property's value to be residential for it to count as semi-commercial, and some lenders require more. If the residential part is smaller, the property is usually treated as fully commercial. It depends on the individual lender.
Most commercial lenders want a deposit of around 25% to 40% of the property's value. The amount depends on the type of property, whether your business will use it or it's let to tenants, and the strength of the business or rental income.
Yes. There's a much smaller pool of commercial and semi-commercial lenders than buy-to-let lenders, and each one has its own criteria for property types, locations and businesses. That's why knowing which lenders suit your property matters so much.
It can be possible, although it's harder. Most lenders prefer two to three years of trading history, but some will consider newer businesses where the owners have strong experience in the same industry or a larger deposit. It depends on the individual lender.
Most commercial mortgages are not regulated by the Financial Conduct Authority, because they're business lending. Some semi-commercial mortgages can be regulated, for example where you or a close family member will live in the residential part of the property.
Book a free call with Harry, our commercial and semi-commercial specialist, to talk through the property, your business and what you're looking to do. He'll explain your options and which lenders' criteria could fit.
Prefer to talk now? Call 01787 209880 or email [email protected]
Book a free, no-obligation call with Harry and find out what's possible for you and your business.
