What counts as semi-commercial property?

Any single property combining commercial and residential use — a shop or office with flats above, a pub with owner's accommodation, or a unit with a maisonette over it.

How does a lender assess it?

For an investment, by looking at the income from both the commercial and residential parts. For an owner-occupier, by leaning on the trading business alongside the property value.

Is it harder to get than a standard commercial mortgage?

Not harder as such, but more specialist — fewer lenders operate in mixed-use, so getting to the right one first matters more.

Can I live in the flat above my business?

Often yes, which is a common owner-occupier arrangement. The lender will want to understand how each part of the property is used.

Is a semi-commercial mortgage regulated?

It depends on the mix and how the property is used. Housn Capital is not FCA regulated and does not lend or advise — we introduce you to a specialist commercial finance broker who can confirm the position.

Guide · Commercial

What is a semi-commercial mortgage?

A shop with a flat above is neither wholly commercial nor residential. Here is how a semi-commercial mortgage handles mixed-use property.

Updated July 2026 · 5 min read · By Housn Capital

What semi-commercial means

A semi-commercial property, also called mixed-use, is one building that is part commercial and part residential. The best-known example is a shop, café or office on the ground floor with a flat or two above. Because it does not sit cleanly in either camp, it needs a mortgage built for the mix — a semi-commercial mortgage.

How lenders treat it

A semi-commercial lender looks at both halves of the property and how you use them. There are two common shapes:

Investment

You let both parts — the commercial unit to a business and the flat above to residential tenants. The lender weighs the income from both.

Owner-occupier

You trade from the commercial unit and live in, or let, the flat. The lender leans on the trading business alongside the property value.

Why it can be attractive

Mixed-use property can spread risk — two types of income under one roof — which some investors like. It can also be a practical way to own the premises you trade from while putting the space above to work. The trade-off is that it is more specialist than a plain residential or commercial deal, so the pool of lenders is narrower and the match matters more.

Find a lender who gets mixed-use

Not every commercial lender is comfortable with mixed-use, and the terms vary widely. Housn Capital introduces you to a specialist broker who knows the semi-commercial market and can match your property to the right lender. Tell us about the property to get matched.

Frequently asked questions

A mortgage for mixed-use property that is part commercial and part residential — most commonly a shop with a flat above. The lender weighs both elements.

Next step

Thinking about commercial for a project?

Tell us a little about your deal and we’ll introduce you to a specialist broker who can talk through the options.

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Housn Capital Limited. Not FCA regulated. B2B non-regulated lending only. Company No. 16418877. General information, not financial advice.