We have been seeing more and more property investors moving into the commercial property sector, many of them already having a portfolio of Buy-to-Let properties in place. Most Buy-to-Let investors’ first steps into commercial investment will be through the purchase of semi-commercial properties. These are properties with residential (Buy-to-Let) and commercial aspects such as a retail store with an apartment above it. Here at Ashley Moore we help our Buy to Let clients with their semi-commercial property mortgages. We also assist our more experienced clients who have large semi-commercial property portfolios. Investors must consider the fact that even though there is a residential element involved in the purchase, financial institutions will see the property as a commercial investment and the rates and terms available will reflect this. Investors wanting to get a mortgage on a semi-commercial property should expect interest rates in the region of 0.75% to 2% above the Bank of England Base Rate, with lenders typically lending up to a maximum of 85% of the property value. The maximum term of a semi-commercial investment mortgage is generally 30 years. Interest Only and Capital Repayment options are offered to the client, enabling them to choose the option best suited to their individual circumstances. |
