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The Client
Client is the owner of a Semi-Commercial Property with a Hair Salon on the ground floor along with a first floor flat. The client had obtained planning permission to build another 2-bed flat at the back, which they had recently completed using Bridging Finance as a short-term funding solution.

Following the pandemic, many Commercial Lenders withdrew from the commercial market due to uncertainties within the sector and lack of investor confidence.

The Scenario
Following the completion of the building works to add the rear flat, the client needed an exit off-the-bridge and wished to secure a new mortgage to pay off the Bridge whilst also having a long-term strategy with lower repayments. The Semi Commercial Property will now be generating rental income from the 2 flats as well as the additional rental income generated from the hairdressers.

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The Solution
Looking at the Semi-Commercial Mortgage option, we were able to illustrate to the Lender that the mortgage could be repaid using the rental income solely from the property. Although the client didn’t have substantial personal income, the Lender was confident with purely the rental income being generated from the security property.

A lot of lenders backed out of the Commercial and Semi-commercial mortgage market during the Covid pandemic; however, using our expertise and contacts have meant that we have been able to continue to offer these products to our clients constantly even during the pandemic. Commercial Lenders are again starting to embrace the strength of the market going forward and invariably will consider a sensible approach to repayment of their mortgage payments.

If you have any questions about Commercial and Semi-Commercial Mortgages or Bridging Finance and would like to receive a free quotation or advice, please call us on 03303 112 646 today. You can also fill in this short online form to get started and an Advisor from our Commercial Mortgage Team will get back to you straight away.

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