News

We continue to deal with a growing range of finance enquiries from clients seeking to maximise their return and choosing commercial and semi-commercial properties, in addition to residential refurbishment and conversion projects. The team supporting our clients’ demand and appetite to invest in more high-yielding projects.

Range of semi-commercial property investment

Mixed-use commercial properties blend residential and commercial elements within a single structure or development. These properties can range from buildings with shops on the ground floor and apartments above to larger complexes incorporating retail, offices, and housing. Semi-commercial properties offer an attractive investment opportunity, particularly those that combine residential, office, and retail uses, allowing for adaptation and increased functionality.

Examples of Mixed-Use Commercial Properties

• Buildings where different floors are dedicated to different uses, such as a shop on the ground floor and flats/apartments above.
• Developments with multiple single-use buildings that serve complementary functions, like a shopping centre with offices and apartments

The partners, IFAs, brokers and introducers who work with Omega continue to discuss requirements for landlords investing in mixed-use properties in their quest for more robust returns, with investors seeking yield, diversification and long-term value.

There is also a rise in finance enquiries for properties with minimal commercial content, typically ground floor retail, small shops or takeaway units that sit below small residential flats. The commercial aspect of these properties can be modest but still delivers a significant overall return. We can arrange commercial mortgages for shops and retail units with competitive terms for our clients to meet this demand.

Finance for Commercial assets

Alongside the discussions with our partner networks on mixed-use projects, demand for fully commercial finance solutions also remains. This has been driven by the gradual recovery of the UK commercial real estate market continued into April 2025, with the latest CBRE UK Monthly Index reporting modest yet consistent growth in capital values and rental returns.

The report outlines positive increases across all property sectors, rental values, retail assets, and the office sector, particularly Central London offices. The industrial and logistics sector also mirrored the general trend for growth in commercial assets.

We have a range of commercial mortgages for offices, plus finance for industrial units and warehouses.

Terms available

Whether your clients are buying mixed-use commercial or full commercial assets, terms are available for clients of all types and debt size requirements. This includes clients buying their first investment to highly experienced investors needing to refinance their portfolio to secure lower, more competitive rates. We can also facilitate commercial finance to release funds for further investment or move to interest-only.

Case Study 1 – Large Commercial investment with spread of tenants

Client able to borrow against Open Market Value rather than Vacant Possession. Terms structured around 65% Loan to Market Value (87% Loan to Vacant Possession Value)

Case Study 2 – 1.83% variable interest rate over cost of funds.

Competitive terms for mixed commercial investment made up of; industrial, office and warehouse

Debt requirement:        £600,000

Interest Rate:                1.83% over cost of funds

Lender Fee:                    1.5% added to the loan amount

Case Study 3 – Semi Commercial asset (mixed use retail on the ground floor with flats above)

Debt secured on an interest only basis, using a Fixed Rate of 5.54% with only two years built-in Early Repayment Charges, secured on a 25 year term.