Semi-commercial
Semi-commercial mortgages
Mixed-use property — a shop with flats above, an office with a residential upper part — funded as one asset on one charge.
What it is
One title, two income streams, one lender.
Brief: explain the mixed-use definition, the split between commercial and residential floor area, and why the residential element often improves the terms available.
[DRAFT] Define semi-commercial and give the floor-area split most lenders work to.
[DRAFT] Explain the commercial stamp duty advantage on mixed-use purchases and why buyers should take their own tax advice on it.
[DRAFT] Cover how lenders weight the two income streams and what happens when the commercial unit is vacant.
Use cases
Typical mixed-use deals.
Brief: name the building types and tenant profiles.
Shop with flats above
[DRAFT] The classic high-street parade unit with one or two residential flats over.
Office with residential upper parts
[DRAFT] Professional ground-floor use with self-contained accommodation above.
Pub or restaurant with living accommodation
[DRAFT] Trading premises with an owner or manager flat.
Vacant commercial element
[DRAFT] How lenders underwrite when the ground floor is empty and the flats carry the income.
Part owner-occupied
[DRAFT] Running your business from the commercial unit and letting the flats.
Splitting the title
[DRAFT] Where separating the residential from the commercial creates value, and what the lender needs first.
Key criteria
How lenders assess mixed use.
Brief: verify LTV and cover ratios against the current panel.
| Measure | Typical position |
|---|---|
| Maximum LTV | [DRAFT] Up to 75% |
| Commercial floor area | [DRAFT] Usually below 60% of total |
| Debt service cover | [DRAFT] 130% – 145% of stressed payment |
| Term length | [DRAFT] 5 – 25 years |
| Rate type | [DRAFT] Fixed or margin over base / SONIA |
| Vacant commercial unit | [DRAFT] Considered on residential income alone |
The floor-area split is the first thing a lender checks. Measure it before you apply.
Go deeper
Part of the commercial mortgage market.
[DRAFT] Short paragraph linking semi-commercial to the main commercial mortgage page and the affordability tool.
Questions
The things people ask first.
Buying a mixed-use building?
[DRAFT] One line asking for the floor-area split, the tenancy position and the price.
Same working day response.