We’re having more conversations than ever with brokers whose landlord clients are considering something that, not long ago, would’ve been off the table - selling their semi-commercial premises to the tenant.
Why now?
There’s no single reason, but a few big shifts are making this a lot more common.
Some landlords are looking to cut back on their portfolio and simplify things. For others, it’s about cashflow, selling the asset can free up capital, especially if the tenant is already established and interested.
But the real change has come from the tenant side. More tenants want to buy and for once, the market is making it easier for them to do just that.
Lenders are finally waking up
Until recently, getting funding for semi-commercial properties could feel like pulling teeth, low LTVs, strict criteria, and higher rates made it a niche part of the market. But 2025 has been different.
Several lenders have upped their LTVs this year. London Credit’s now at 70%, InterBay has improved its range, and SDKA’s has gone as high as 75%. Hampshire Trust Bank is even offering standard buy-to-let rates on qualifying semi-commercial properties which is a big shift, and not just in price. It shows lenders are softening their stance.
On top of that, we’ve seen new players enter the space, MT Finance being one of them. More competition means keener pricing, more flexible criteria, and better choice all round. In fact, London Credit recently dropped their semi-commercial bridging rates to illustrate this point.
Add all that up, and we’re starting to see something we haven’t seen in a long time, tenant buyers with actual options.
When the numbers start to stack up
It’s not hard to see the appeal if you’re a tenant.
Instead of paying rent and being at the mercy of lease renewals, you take control of your premises. And with pricing more competitive and loan-to-values higher, that leap suddenly looks a bit more manageable.
In some cases, tenants can even buy the freehold for less than they’d pay to lease over five or ten years. And if they’ve already invested in fitting out the space or built up a good customer base in that location, it becomes a strategic move, not just a financial one.
Of course, these cases still need proper structuring. It’s not just about rate, it's about term, repayment profile, and how the deal interacts with any remaining residential element.
The role of the broker
This is where good brokers come into their own.
Knowing the right lender, understanding their criteria, and being able to put the case together properly, these things matter. Every semi-commercial deal is different. You’ve got to consider the lease, the tenant’s track record, and the condition and use class of the property.
We’ve had cases where tenants were given first refusal by landlords looking to exit, but they were initially turned away by their own bank. When we stepped in, we found funding via specialist lenders that understood the asset, looked at the bigger picture, and offered terms that worked.
That’s the gap we fill. And it’s one we’re being asked to fill more often.
Quiet no more
Semi-commercial used to be a bit of a niche, a quiet backwater of the property market. But not anymore.
With landlords rethinking their strategies and tenants sensing an opportunity to buy, the dynamic is shifting. And with lenders more willing to support these types of deals, we expect to see a lot more semi-commercial purchases go through in the coming months, many of them driven by tenants who never expected to be in a position to buy.
So, if you’ve got clients, landlords or tenants that are sitting on the fence, now’s the time to talk.
