Client situation.
A borrower required finance for a semi-commercial property they had an opportunity to acquire as a pre-auction purchase. The property comprised a leased commercial unit on the ground floor with an existing tenant, and a recently refurbished residential unit above that was currently vacant. The mixed-use nature created complexity for assessment, while the pre-auction agreement timeline meant the borrower needed certainty of funding within days rather than weeks.
Our solution.
We structured a £207,400 facility at 68% LTV, assessing both the commercial and residential components of the property. This required us to take the existing lease income from the ground floor commercial unit alongside the quality of the recently refurbished residential accommodation above into account.
Our semi-commercial expertise enabled us to evaluate the diverse income streams and usage types efficiently. The assessment recognised the immediate income from the commercial tenant and the potential rental incomes of the refurbished residential unit, providing a comprehensive view of the security value.
Result.
Completion was achieved in 9 days, enabling the borrower to secure the property ahead of the deadline. The rapid completion on a mixed-use property demonstrated our ability to assess semi-commercial securities efficiently while meeting tight timelines. The borrower gained access to a property with immediate commercial income and future residential income potential, executing their investment strategy within the required timeframe.
Semi-commercial properties require expertise. We assess both commercial and residential components efficiently.