Commercial finance
Technically, a buy to let mortgage is commercial finance. It is a mortgage which is not linked to your home but to an investment property.
Here we talk about commercial finance which can be used for:
- buy to let
- investment property
- property development
- holiday lettings
- mixed usage plots
- property portfolios
- semi commercial property
- auction property purchase
We have been arranging buy to let finance for a long time and commercial buy to let finance is now available with flexible terms.
In some cases a commercial mortgage can be cheaper than a buy to let mortgage or will allow you to borrow more money or perhaps a higher percentage of the property value.
Auction finance
This is a form of bridging finance that allows you to quickly secure funds to allow a property purchase to proceed. Don't forget, if you buy at a property auction you need to complete within 28 days.
Property development finance
As it suggests, a commercial finance package designed for developing property and increasing the property value. Funds available for the initial purchase and development costs.
Holiday letting and mixed use
We come across this quite a lot. Two or more buildings on one title, each having a different purpose. Typically a main residence and one or more holiday letting properties. This type of situation is no problem for us.
Semi commercial property finance
This would normally be a freehold shop with a self contained flat above. Again, very popular and we have the commercial finance contacts to place these deals quickly.
This is a term that is banded about the industry quite readily;
but what exactly is a semi-commercial property?
The answer can be a little grey, however the general definition
would be; any land or buildings that are not used exclusively for
commercial purposes i.e. there is commerciality, combined with a
residential occupier. Good examples would include:
- Shops with flats above
- Offices with flats above
- Restaurants with flats above
Or the reverse!
Why Invest in Semi Commercial Property?
We and many of our clients believe that the answer is stability,
because wrapped up in one neat package; there are two assets, which
are linked to different markets, with different income/growth
performance.
The income yields are generally higher, and now, due to the “credit
crunch”, more investors; many who are invested in Buy to Let
property, are now turning to Semi- Commercial Investment properties*
to balance, and add both growth and income to their portfolio’s.
*NB
Where the residential living space accounts for more than 40% of the
total area, by Sq Ft, residential mortgage regulation will apply;
requiring special paperwork procedures. Please make us aware of
this, during contact/discussions.
