Semi-Commercial Mortgages in Southwark

How we structure semi-commercial finance for Southwark property

We arrange the full range of semi-commercial and mixed-use finance for Southwark property. A semi-commercial mortgage funds the purchase or refinance of an investment or owner-occupied mixed-use asset, typically to 70 to 75 percent of value, priced from around 6.5 to 8.5 percent a year. Where the residential element is large, a mixed-use mortgage may be sized on the blended income from both parts. Semi-commercial bridging covers a quick purchase, an auction lot or a property that needs works before it will support a term loan, usually from around 0.70 to 0.95 percent a month. For landlords holding several mixed-use or part-commercial assets, portfolio finance consolidates them under one facility. Once an asset is stabilised and let, a semi-commercial remortgage moves it onto a keener rate and releases equity for the next purchase in Greater London.

Mixed-use assets we finance across Southwark

Each kind of mixed-use asset is treated differently by different lenders, and we arrange finance for all of them in Southwark and across Greater London. That covers the classic shop with a flat above, offices with residential upper floors, pubs and guest houses with owner or letting accommodation, restaurants and takeaways with flats, retail parades with residential uppers, HMOs above commercial units, surgeries and professional premises with living space, and larger mixed-use blocks. The key question every lender asks is how much of the property, by floor area or value, is residential against commercial, because that split decides which desk will lend and on what terms.

The residential element: what local values tell a lender

Recent Land Registry transactions show the spread that defines Southwark underwriting. At the upper end, 244 Friern Road (SE22 0BB) traded at £1,470,000 in March as a freehold semi, and a flat at 260 Waterloo Road (SE1 8RH) cleared at £950,000, both anchoring the family-house and prime-flatted comparables. The terraced market printed 59 Ondine Road (SE15 4EA) at £935,000 and 14 Abbotswood Road (SE22 8DL) at £700,000. The bulk of activity sat in the £400,000 to £625,000 flat band: 26A Aberdour Street (SE1 4SG) at £625,000, Flat 2, 377 Upland Road (SE22 0DR) at £625,000, and Apartment 305, Hurlock Heights, 4 Deacon Street (SE17 1GD) at £525,000 (exactly on the borough median). At the lower end, ex-local-authority flatted stock cleared from £335,000 (Widecombe House, Crawford Estate, SE5 9HF; South City Court, Peckham Grove, SE15 6AU). That £335k to £1.47m spread inside a single borough is why valuer comparables in Southwark are so postcode-sensitive.

This residential evidence values the living space within a mixed-use property and gauges how readily it would let or sell. It is not a guide to the commercial unit's value, which is tenant and covenant driven.