What Is A Semi-Commercial Property?

Quite simply, a semi-commercial property is a property that has both a commercial element and a residential element to it. So, let’s have a look at some of the types of semi-commercial properties typically seen.

Shop/flat

One of the most common sorts of semi-commercial property is a shop that has a flat above it that are both part of the same title from a security point of view. The owner of the shop may also live in the flat or may rent the flat out to someone else to generate additional income.

In the above example, if you needed to raise finance to purchase such premises this would usually be done by arranging a commercial mortgage.

However, if the shop and flat each had a separate title from a security perspective and separate entrances, then it may be possible to arrange a commercial mortgage on the shop and a residential mortgage on the flat.

A commercial mortgage is the type of finance usually required to buy a guest house
If you need finance to purchase a bed and breakfast business you are likely to require a commercial mortgage

Bed and Breakfast

Many owners of B and B’s run the business for paying guests but also live in the B and B. Again, in this situation, you would almost certainly need to apply for a commercial mortgage.

Pub

It is quite common for the owner of a pub to have living accommodation above the pub for his or her own occupation. They may also let out some of the bedrooms as bed and breakfast accommodation. If finance were required to buy the premises then it would likely be a commercial mortgage that you would need to apply for.

Cattery/Dog Boarding Kennel

If you want to buy a property with the assistance of finance in which to live that has separate accommodation on site to house and look after cats and/or dogs as a business then you are probably going to need to apply for a commercial mortgage.

The above are just some of the examples of semi-commercial property. Do feel free to leave your comments.

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