Semi-Commercial Mortgages
Semi-commercial mortgages for mixed-use properties combining commercial and residential elements - shops with flats above, commercial units with residential conversion, and multi-use blocks - from specialist lenders who assess the combined income from both elements.
Combined commercial and residential income assessment
Most mainstream lenders avoid semi-commercial properties entirely. A shop with a flat above has both a commercial rent and a residential rent - requiring a specialist lender who can assess the combined income from both elements, apply appropriate DSCR/ICR thresholds to each, and understand the specific risks of a mixed-use asset class.
Every semi-commercial structure placed
Shop With Flat Above
The most common semi-commercial scenario - a retail ground floor with residential flats above. Specialist lenders assess the commercial rent and residential rent separately, combining both in the overall income assessment.
Commercial Unit With Residential Conversion
Commercial properties partially converted to residential use - a warehouse with residential loft above - require specialist lenders comfortable with the planning status and the combined use income profile.
Mixed-Use Blocks
Multi-unit blocks with commercial units at ground level and residential above - office building with ground floor retail, converted pub with restaurant and flats - assessed by specialist commercial portfolio lenders.
High Street Properties
High street corner properties with multiple commercial tenants and residential above are a common semi-commercial asset. Specialist lenders assess the rental income across all units and the relative weight of residential and commercial in the overall income.
Permitted Development Conversions
Commercial properties undergoing partial permitted development residential conversion - retaining commercial at ground floor - require specialist finance during the conversion period and specialist semi-commercial mortgage on completion.
Ltd Co and Personal Name
Semi-commercial mortgages are available in both personal name and limited company SPV structures. The tax treatment of commercial versus residential rental income within the structure requires accountancy advice specific to your situation.
How it works
Property and income details
Share the property description, commercial and residential tenants, rents, and lease terms. We identify the most appropriate specialist semi-commercial lender for your specific asset.
Combined income modelling
We model the combined income coverage across specialist lenders - commercial DSCR and residential ICR - to identify which lenders pass your specific property's income profile.
Specialist valuation and application
Semi-commercial valuations require a RICS valuer experienced in mixed-use assets. We manage the valuation instruction and the full mortgage application simultaneously.
Legal completion
Mixed-use properties have more complex legal title arrangements than standard residential or commercial. We co-ordinate lender and borrower solicitors throughout the process.
Looking for a semi-commercial mortgage?
Share the property and income details. We return indicative semi-commercial mortgage terms within 24 hours.
Frequently asked questions
What qualifies as a semi-commercial property?
Any property with both a commercial and a residential element - a shop with a flat above, a commercial unit with residential conversion above, or a mixed-use block combining commercial tenants at ground level with residential above.
How is income assessed on a semi-commercial property?
Specialist lenders assess the commercial element on a DSCR basis (net rental income relative to interest) and the residential element on an ICR basis (gross rent at a stress rate). The combined income from both elements is used in the overall assessment.
What LTV is available on a semi-commercial property?
Typically 70-75% LTV from specialist semi-commercial lenders. The specific LTV depends on the balance between commercial and residential income, the quality of the commercial tenants, and the overall property value.
Can I get a semi-commercial mortgage through a limited company?
Yes. Limited company SPV structures are available for semi-commercial properties. The tax treatment of mixed commercial and residential rental income within the company requires accountancy advice.
What if the commercial element is vacant?
Some specialist lenders will consider semi-commercial properties with a vacant commercial unit, particularly where the residential income alone covers the ICR. The rate will typically reflect the vacancy risk.