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Semi-commercial property can offer excellent opportunities for clients, but only when the funding is structured properly and built around the specific client, their needs and of course the property itself. We’ve banged this drum before, but we do know from decades in the commercial space the importance of positioning a case and configuring deals in the right way. The Omega team work with our introducing partners and clients to put these proposals together to access competitive terms and access specialist lenders not available on the open market.

Semi Commercial Investment Property

Enquiries are increasingly comprised of clients wanting to blend investment types and diversify their portfolios through semi-commercial assets. These properties can combine owner-occupied commercial space with residential or investment elements, helping clients balance income streams, strengthen long-term occupancy security and create room for future growth.

We recently secured rates for a client of 5.55% at 65% LTV interest only for term.

Case Study: Semi-Commercial Structure in Practice

In this scenario, the team were briefed that a trading business had acquired a part owner-occupied, part investment property through a limited company structure. Their trading business was relocating from an existing local unit into the commercial space, while the upper residential element was let to third-party tenants. This approach meant there was no disruption to trade, while also giving the business long-term security over its premises and additional space to support future expansion.

The client established a PropCo (property company) to hold the asset, leasing the commercial element to their operating business and the residential units inherited existing tenancies to external parties. As the PropCo company was newly formed, lender selection and case presentation were critical. By understanding the wider picture of the property, alongside the trading business, we were able to support a more holistic solution, including access to a lender’s current account offering alongside the funding.

Terms Secured

The terms initially available were around 75% loan-to-value at a 5.75% fixed rate. However, because the client had additional funds available and was open to structuring the transaction differently, we were able to help secure a stronger outcome:

65% loan-to-value with a 5-year fixed rate at 5.00%.

This case was a great example of where the experience of the Omega team made a difference. We worked with the client through in-depth discussions to achieve the best outcome for their needs.

Partner with a specialist commercial finance provider

For clients, brokers, IFAs and introducers, it’s not just about giving confidence to present good terms, it’s the reassurance of the service we provide to support throughout the process. We offer all our introducing partners and networks practical and professional guidance from enquiry through to completion.

Semi-commercial property can be a smart option for clients looking to strengthen returns while spreading risk. With the potential for higher yields, mixed income streams, lower Stamp Duty costs and long-term growth, these assets can play an important role in a well-balanced portfolio.