Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property118. Read the original article for full details.

LendInvest Launches New Semi-Commercial Buy-to-Let Mortgage Products

LendInvest has launched a new range of semi-commercial buy-to-let mortgage products, with two and five-year fixed rates starting from 5.94%. The products are available to qualifying individual and corporate borrowers, with applications processed through specialist mortgage intermediaries.

According to LendInvest, the mixed-use sector now represents around 24% of all commercial lending activity. The lender also reports that applications for semi-commercial finance doubled during 2024 and increased by a further 58% in the first half of 2025. Retail premises with residential accommodation above account for almost seven in ten applications, indicating a growing interest in this asset class.

For UK letting agents and inventory clerks, the announcement highlights a shift in landlord investment strategies, with more attention being paid to semi-commercial and mixed-use properties. These properties can offer diversified income streams and may involve both commercial and residential tenancy arrangements, requiring careful due diligence and understanding of different tenancy types.

One notable advantage for investors is the lower purchase tax on semi-commercial and mixed-use properties compared to residential investment property. Purchasers benefit from commercial land transaction tax rates, which are generally lower than residential rates and surcharges. The current commercial rates are as follows:

• Up to £150,000: 0%
• £150,001 to £225,000: 2% (England), 3% (Scotland), 0% (Wales)
• £225,001 to £250,000: 2% (England), 3% (Scotland), 1% (Wales)
• £250,001 to £1,000,000: 5%
• Over £1,000,000: 5% (England/Scotland), 6% (Wales)

These rates are progressive, applying only to the portion of the purchase price within each band. For larger acquisitions, the savings compared to residential property can be significant, potentially freeing up capital for refurbishment or further investments.

The report notes that semi-commercial investments are not suitable for everyone and require careful consideration of lending criteria and tenancy arrangements. However, for experienced landlords, they may offer attractive cashflow, longer commercial leases, and lower acquisition costs.