Coventry — security property
A property investor purchased a mixed-use freehold at a Midlands auction — ground floor retail with a tenanted two-bed flat above. No standard mortgage lender would consider it within 28 days. AF Credit completed a semi-commercial bridging loan in 22 days at 57.8% LTV against the blended value of both elements.
Coventry — security property
Mixed-use auction lot — ground floor retail with flat above. 28-day completion deadline. No mainstream or standard BTL mortgage lender would consider the property type on that timeline. The investor needed a lender that genuinely understood semi-commercial property and could move quickly.
AF Credit instructed a specialist RICS valuer to assess the blended value of both the commercial and residential elements. Loan structured at 57.8% LTV against the blended valuation. Full legal instruction within 24 hours of credit decision.
£260,000 completed in 22 days — six days inside the auction deadline. Investor now holds both elements generating combined rental income. Refinance to a semi-commercial investment mortgage underway.
Semi-commercial property — any property combining residential and commercial use under one freehold title — occupies an awkward position in the UK lending market. Standard residential mortgage lenders will not consider it: their criteria require a purely residential security. Most buy-to-let mortgage lenders apply the same restriction. Mainstream commercial lenders often find the residential element inconvenient. The property falls between categories, and most lenders simply step aside.
In this case, the borrower had identified a shop with flat above on a town-centre parade in Coventry. The ground floor was a retail unit — previously a hairdresser, vacant at auction — with a two-bedroom flat on the first floor tenanted at £875 per month. Freehold. The auction guide price was £380,000 and the borrower secured it for £450,000, reflecting genuine demand and a realistic blended value for the location.
The borrower had arranged an in-principle agreement with a mortgage lender in advance of the auction but the offer was withdrawn when the lender's underwriting team confirmed they could not lend on a property with any commercial element. A secondary approach to a commercial lender stalled when they indicated the residential flat above created complications for their standard commercial product.
Fourteen days into the 28-day completion window, the borrower had no finance in place.
Timeline| Item | Detail |
|---|---|
| Property type | Mixed-use freehold — ground floor retail + two-bed flat above |
| Location | Coventry, West Midlands |
| Blended property value | £450,000 |
| Purchase price | £450,000 (auction) |
| Net loan | £260,000 |
| LTV (blended) | 57.8% |
| Monthly rate | 0.79% |
| Term | 12 months |
| Charge | First charge |
| Valuation method | Specialist RICS — blended residential and commercial |
| Tenancy status | Retail: vacant. Flat: AST at £875/month |
| Exit strategy | Refinance to semi-commercial investment mortgage |
| Time to complete | 22 days (6 days inside 28-day deadline) |
Yes. Specialist bridging lenders including AF Credit lend on semi-commercial and mixed-use properties — typically defined as a property combining residential and commercial use under one freehold title. Common examples include shops with flats above, pubs with accommodation, and offices with residential floors. Mixed-use properties fall outside standard mortgage criteria but are well within the scope of specialist bridging finance.
Yes. A shop with flat above is the most common form of semi-commercial property and is a standard security type for specialist bridging lenders. The lender assesses the blended value of both elements and lends against that combined figure. Both vacant and tenanted configurations are considered.
A specialist RICS valuer assesses both the commercial and residential elements of the property and produces a blended valuation. The commercial element is typically valued on a yield basis using actual or market rent. The residential element is valued on a comparable sales basis. The combined figure is the basis for the loan-to-value calculation.
Yes — and bridging is often the only practical route for mixed-use auction lots within the 28-day completion window. AF Credit can instruct legals quickly and has completed semi-commercial auction purchases well inside the standard deadline.
The most common exits are refinance to a semi-commercial investment mortgage, sale of the property, or a combination of the two. AF Credit reviews the exit strategy at enquiry stage to confirm it is realistic before proceeding.
AF Credit understands semi-commercial assets. We lend on shops with flats above, pubs with accommodation, and mixed-use freeholds across England and Wales. Same-day indicative terms on all enquiries.
Get same-day termsDisclaimer: Case study details have been anonymised to protect client confidentiality. All lending is subject to underwriting and credit approval is not guaranteed. Any property used as security may be repossessed if you do not repay your loan within the agreed term. AF Credit acts solely as a lender and does not provide financial advice.