Our short term bridging loans are for purchase, refinance, property improvement or to unlock working capital for business purposes.
This unique overdraft provides you with a flexible drawdown facility giving you instant liquidity and avoids heavy setting-up costs.
Individually structured loans for residential and commercial projects, with finance available for site purchase, construction and fees, refinance, equity release and to provide working capital. Loans are available up to 90% of the site cost.
Flexible first and second charge non-regulated loans available on terms from 3 to 5 years.
We have a commitment to innovation and with the ever changing financial landscape around us we have designed a range of unique Specialist Lending products that solve a range of property finance needs.
By Jonathan Rubins, Director & Chief Commercial Officer at Alternative Bridging Corporation
The property market in the UK is experiencing a growing interest in semi-commercial and mixed-use property loans. This trend is driven by the flexibility and dual-purpose nature of these properties, making them an attractive investment for a diverse range of buyers and businesses. In this blog, we will explore the nature of semi-commercial and mixed-use loans, the types of properties that fall under these categories, and why such investments are becoming increasingly popular. We will also look into the forecasted boom in this sector, with a particular focus on developments in London and the South East.
A Semi-commercial loan, is primarily designed for properties that serve both residential and commercial purposes. The dual nature of these properties necessitates a specific type of financing that acknowledges the unique risks and opportunities associated with them. Semi-commercial loans cater to these needs by providing flexible financing solutions that can cover both the residential and commercial components of the property.
Properties that qualify as semi-commercial typically have a portion dedicated to commercial use, such as a retail space, office, or workshop, while another part is used for residential living. Examples may include:
Shops with flats above: Common on many high streets, these properties have retail space on the ground floor and residential accommodation on the upper floors.
Bed and breakfasts: These establishments provide accommodation as well as hospitality services, mixing residential living with commercial operations.
Live-work units: Properties where the business owner lives on the premises, which might include studios, small-scale manufacturing units, or consultancy offices.
Mixed-use loans allow individuals or businesses to purchase or refinance properties that serve both residential and commercial functions. Mixed-use loans are designed to address the complexities of financing properties that do not fit neatly into a single category. These loans are ideal for business owners who require a property that accommodates their living needs as well as their business operations, providing the financial flexibility to support both aspects.
Properties of mixed-use are increasingly sought after due to their versatility and potential for multiple income streams. The combination of residential and commercial spaces within a single property allows investors to benefit from diverse revenue sources. For instance, the residential portion can generate rental income, while the commercial space can be leased, providing a steady flow of commercial rent.
Additionally, mixed-use properties are often located in popular areas such as city centres, which enhances their appeal. These properties can attract both residential tenants and commercial lessees, ensuring high occupancy rates and stable income. Furthermore, the convenience of having living and working spaces in close proximity appeals to many business owners, particularly in urban areas where commuting times and transportation costs can be high.
The UK property market is seeing a surge in demand for semi-commercial and mixed-use properties, driven by several key factors. As urban areas become increasingly congested and property prices continue to rise, the versatility and functionality of mixed-use properties are becoming more attractive to investors and business owners alike.
London and the South East, has a particularly noticeable trend. Large sites are being acquired with the intention of utilising only a portion of the space for the owner’s business needs. The remaining space is then sublet for mixed-use purposes, creating a lucrative opportunity for property owners to maximise their investment. This approach not only optimises the use of space but also generates additional income streams, increasing the financial viability of the project.
The concentration of economic activity and population density in London and the South East has made these regions prime candidates for mixed-use developments. Many large sites are being redeveloped to accommodate both residential and commercial spaces, reflecting the changing needs of businesses and residents. Flexibility offered by mixed-use properties allows developers to cater to a broader market, appealing to both commercial tenants and residential buyers.
Investing in semi-commercial and mixed-use properties offers numerous benefits. These properties tend to be more resilient to market fluctuations compared to single use properties, as they cater to both residential and commercial demand. This dual purpose nature can provide a buffer during economic downturns, as the income from one segment can offset potential losses in the other. Additionally, mixed-use properties often appreciate in value more rapidly than their single-use counterparts. Demand for well-located, versatile properties continues to grow, driven by urbanisation and the changing needs of modern businesses and residents. As a result, investors can benefit from significant capital gains over time.
Securing financing for mixed-use properties can be more complex than for traditional residential or commercial properties. However, the growing recognition of the value of mixed-use investments has led to a wider range of financing options. Lenders are increasingly offering bespoke loan products that address the specific needs of mixed-use properties, providing flexible terms and competitive rates.
These financing options include , commercial loans, and specialist mixed-use loans that combine elements of both. The choice of financing will depend on various factors, including the property’s intended use, the borrower’s financial situation, and the lender’s criteria.
Our Commercial Bridging Loans are perfect for funding the purchase or refinancing of mixed-use property. These short-term mix-use property loans are available for 3- 24 months in the amount of £250,000 to £3,500,000 on first charge.
Our commercial bridging loans are available on mixed-use properties including:
• Retail units.
• Shopping centres.
• Office buildings.
• Industrial and distribution premises.
• Mixed-use residential investments.
We lend to investors, and the business community who intend to be owner occupiers.
If you would like to learn more about one of our case studies involving a semi-commercial bridging loan, you can find the details here. In this case, we provided a semi-commercial bridging loan of £1.2 million to aid a property purchase.
The outlook for semi-commercial and mixed-use properties in the UK remains positive. The continued increasing demand for flexible living and working spaces is set to drive growth in this sector. As businesses and individuals seek more adaptable and efficient use of space, mixed-use properties will continue to play a key role in meeting these needs.
Furthermore, government policies aimed at revitalising urban areas and supporting sustainable development are likely to boost the development of mixed-use properties. Initiatives such as relaxed planning regulations and financial incentives for mixed-use developments can encourage more investment in this sector, contributing to its ongoing growth and success. In conclusion, the boom forecast for semi-commercial and mixed-use property loans reflects a broader trend towards more versatile and efficient use of space in urban areas.
These properties offer a compelling investment opportunity, combining residential and commercial uses to maximise returns and provide resilience against market fluctuations. As the demand for flexible living and working environments continues to rise, semi-commercial and mixed-use properties are set to become a key part of the UK property market.
If you have any questions about how our Commercial Bridging Loans can be used by your clients’ to purchase, refinance or renovate a mixed-use property, don’t hesitate to get in touch with one of our BDMs.
Don't miss our product updates or property market news.
By entering your email address, you agree to receive our marketing offers in accordance with our Privacy Policy
