Semi-Commercial Mortgages in Southampton

How we structure semi-commercial finance for Southampton property

We arrange the full range of semi-commercial and mixed-use finance for Southampton 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 Hampshire.

Mixed-use assets we finance across Southampton

Each kind of mixed-use asset is treated differently by different lenders, and we arrange finance for all of them in Southampton and across Hampshire. 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. Local planning records show 56 residential units in the Southampton pipeline, a measure of the mixed-use and conversion activity that drives demand for this kind of finance in the area.

The residential element: what local values tell a lender

Recent transactions set tight per-unit anchors for sponsors underwriting conversion exits. Freehold semis on Waterloo Road traded between £300,000 (89 Waterloo Road, SO15 3BS) and £310,000 (91 Waterloo Road, same postcode) on 26 March 2026, which is the directly relevant comparable set for the 52-54 Waterloo Road consented scheme one street along. A detached freehold at 3 Heath Road SO19 2QF cleared at £315,000 on 24 March, anchoring the eastern Southampton family house band. The leasehold flat tape is wide: a flat at 78 Portswood Road SO17 2FB (Flat 4, Lowmans House) sold at £127,500 while Flat 6 in the same building cleared at £210,000, showing how unit size and floor level swing per-flat exits inside a single conversion block. The lower entry points are stark, with Flat 105, 25 Latimer Street SO14 3EP clearing at £65,000 and Flat 10, Simco Court (81 Northlands Road, SO15 2DQ) at £64,000. Sponsors should not project these basement comparables forward for newly converted product, but they do illustrate the floor risk if quality or specification slips.

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.