Semi-Commercial Mortgages in Tower Hamlets

How we structure semi-commercial finance for Tower Hamlets property

We arrange the full range of semi-commercial and mixed-use finance for Tower Hamlets 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 Tower Hamlets

Each kind of mixed-use asset is treated differently by different lenders, and we arrange finance for all of them in Tower Hamlets 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

The transaction file shows where the borough is actually clearing. Apex House on Bacon Street (E1) sold for £695,000 on 30 March, the kind of E1 leasehold flat that holds value through a softer market. Apartment 4905, 10 Marsh Wall (E14) reached £680,000, while Astell House on Lyell Street took £435,000, both in the post-Wharf E14 strip where new product has been competing with second-hand stock. New Providence Wharf on Fairmont Avenue sold for £335,000, an E14 9PX leasehold that illustrates how older Wharf-era flats are now pricing well under their original sales values. The new-build premium of 71.4% across only 114 new-build sales against 1,738 existing-stock sales tells the developer story clearly: bring a well-specified new product to market and pricing power remains, but the resale market for ten-year-old Wharf flats is doing the heavy lifting on the headline 7.5% fall.

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.