A loan where the target property is a mix of Commercial Premises and Residential Investment.
Typical examples will include Retail or Office premises with a flat or flats upstairs. Lenders will usually expect the upstairs residential areas to have their own independent access. Up to 75% loan to value is typically available and interest only and capital & interest repayment options are available.
Where the commercial element and residential element are part of one freehold property, the building is referred to as a semi-commercial property. Loans for Semi-Commercial properties are treated as pure commercial loans, despite the residential element.
Many clients will purchase such properties as an investment although some clients will purchase such properties where they run the business trading from the commercial unit and let the upstairs to third parties to provide an additional income. In the latter scenario provided the business generates profits acceptable to the lender they may treat the transaction as Owner Occupier attracting lower interest rates than those provided on Semi-Commercial investment transactions.