"Some investors and SMEs are turning to semi-commercial property because it doesn't incur the three per cent stamp duty surcharge on additional properties"
At Together, we're dealing with these enquiries more frequently, across a wide range of customers; from investors buying at auction or looking for short-term finance to secure these types of properties, to those applying for semi-commercial mortgages.
One of the reasons for this increase is that split-use property can often be viewed as being complex, so accessing traditional funding may be difficult. For example, many mainstream lenders won't provide funding on residential flats that are above a restaurant or takeaway.
Specialist lenders like ourselves, however, regularly deal with cases that don't tick the mainstream boxes; for a whole variety of reasons, and split-use property is just one example of many. Some investors and SMEs are turning to semi-commercial property because it doesn't incur the three per cent stamp duty surcharge on additional properties, and is not affected by the tax relief changes on residential buy-to-let.
We're also seeing more investors developing residential property by, for example, splitting a large house in two, building a new house on a corner plot or converting the garages of a family home into an office or workspace.
It is important to take legal and financial advice before embarking on these kinds of projects but, with the right support and specialist funding, there are plenty opportunities for investors looking at split-use properties, and it seems likely this demand will continue to increase in the future.
