Mixed-Use Property Mortgage
New Borrowers – We’re here to help with purchases and remortgages that need a practical, case-by-case approach, However, the advice will now need to be provided by a mortgage intermediary (also known as a mortgage broker), as we are temporarily pausing esbs direct mortgage advice for new borrowers.
This allows us to focus on supporting our existing members and their evolving needs. This is a short-term change, and we will provide updates as soon as esbs direct mortgage advice for new borrowers becomes available again.
Full details can be found here
At esbs we know how crucial it is to choose the right mortgage type. If you’re planning to buy a property which will be used in part for a business venture and apply for a regular commercial or residential mortgage then you will face plenty of difficulties. Fortunately, our mixed-used property mortgage service has been offered exclusively for this purpose.
What Is A Mixed-Use Property Mortgage?
A mixed-used property mortgage is a type of mortgage which enables you to purchase a property of mixed-usage, with both residential and commercial elements. It can also be referred to as a semi-commercial mortgage.
At esbs we are able to consider a mortgage for a property which is also to be used for certain types of business activity which can be carried out in a single room such as
- Hairdressing
- Dog Grooming
- Reflexology
- Physiotherapy
- Hypnotherapy
- Beauty Therapist
- Accountant/Book keeper
- Seamstress/Tailor
- Chiropodist
- Caterer /Cake maker
- Counsellor
- Dietician
- Teaching/Tuition
- Music Teacher
- Plus many more similar activities
Therefore, if you’re considering purchasing or remortgaging a property with this type of activity in mind then a mixed-used property mortgage from esbs is the right choice for you.
What are the Conditions for an esbs Mixed-Use Property Mortgage?
– Only a single room may be used for business purposes
– No structural alterations or adaptations are permitted to accommodate the business use
– No employees can work on the premises (except close relatives)
– Any external advertising of its use is discreet and has relevant Local Authority approval, and the Local Authority to confirm no change of use required
– No restrictive covenants on the property preventing business use
– The property’s buildings insurer is aware of and has agreed the incidental use
– Relevant public liability insurance is in place
– Business usage is for our borrower and does not pass with the title to a subsequent owner
– Only 50% of income from the business carried out in the property can be used. Other earned income will be assessed as usual
If you have any questions related to mixed-use property mortgage service from esbs please don’t hesitate to contact us today.
| PRODUCT | DISCOUNTED FOR | STANDARD VARIABLE RATE (SVR) | INITIAL RATE PAYABLE | APRC | EARLY REPAYMENT CHARGE PERIOD | MAX LTV | BOOKING/ ARRANGEMENT FEE |
| MIXED USE PROPERTY – SVR LESS 1.30% for 5 YEARS | 5 years | 7.64% | 6.34% (Floor 2.5%) | 7.4% | 3 years | 50% | £999 Arrangement Fee |
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
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