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Semi-Commercial Property – Units Below 30sqm

Semi-Commercial Property Units below 30sqm - Advocate Finance

Is interest of owning a semi-commercial property on the rise?

Unsurprisingly, the recent increase in rates that everyone is experiencing at the moment, is forcing landlords and investors into diversifying their portfolios as best they can to manage cost and improve profitability. One property class that has benefited from this are the semi-commercial units, which we are finding more popular with our clients.


Why are semi-commercial properties becoming popular?

Semi-commercial properties typically achieve a much higher yield than standard residential buy to let properties; you also benefit from multiple income streams due to their being multiple tenants in place.

Furthermore, when purchasing a semi-commercial property you are exempt from the extra 3% stamp duty surcharge that you would otherwise have to pay if you already own a residential property. This will offer you a lower transaction cost compared to investing in typical residential properties – please always seek qualified legal / tax advice for this to be confirmed prior to purchase.


Individual unit sizes of your semi-commercial property below 30sqm?

One of the most common semi-commercial properties we see and provide finance for, are multiple flats above a ground floor commercial unit on one freehold title. It is also not unusual to find that the sizes of each individual flat can be below 30sqm which is typically the minimum size required for many lenders across the market. This can lead to clients thinking their property is not mortgageable, or it could even potentially put investors off from purchasing these assets when everything else seems to stack up.

However, there are lenders available who don’t consider this an issue and you are also not financially impacted from higher rates or lower loan to values for these properties to be accepted. In fact, even if all / multiple units within the block are below 30sqm in size, you still have one of the most competitive lenders in the market available to use.

Whether it has been a property consisting of 1 shop let out to a tailors with 4 flats above (2 out of the 4 flats were below 25sqm in size), or 16 shops let out to various businesses with 7 flats above (all 23 units were below 30sqm in size), we have successfully financed these property types on market leading rates.

These are just a few examples where we have found our clients a solution, when they initially came to us thinking they would have difficulty finding the finance they required for their semi-commercial property.


How can Advocate Finance help?

We are Semi-Commercial Property experts here at Advocate Finance, so if your existing property or a property you’re purchasing comprises of units below 30sqm, please contact me and I’ll see if I can find a solution for you; whether it is only one unit in the block or all of them. As always, we assess each case on it’s own merits tailoring a solution to your individual needs.

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Picture of Henry Barley

Henry Barley

Senior Property Finance Adviser | | 01206 544333
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Picture of Henry Barley

Henry Barley

Senior Property Finance Adviser | | 01206 544333