Since the Stamp Duty hike in 2015, introducing a 3 per cent surcharge on second homes, we have seen a growing interest from landlords in semi-commercial properties. Typically, this would mean a commercial unit such as a shop with a residential component above it, which wouldn’t be subject to the stamp duty increases and could present a good investment opportunity.
Factors for you to consider if you are thinking about investing in a semi-commercial property include:
- lenders often prefer the residential element to make up over 50 per cent of the building
- separate access to the residential unit is normally part of standard underwriting criteria
- minimum square footage of residential flats above commercial units needs to be met
- applicants should ideally have prior letting experience
Buy-to-let Direct has a number of specialist lenders available on its online buy-to-let mortgage finder who provide semi-commercial finance, such as Interbay and Shawbrook Bank, and we have an extensive list of other lenders via our specialist commercial finance team.