The situation
The classic issue is a lender comfortable with the residential upper floors but nervous about the ground-floor retail (or vice versa). Specialist mixed-use lenders assess both together, pricing accordingly.
How we approach it
We route mixed-use schemes to lenders that actively fund them — pre-let or speculative on the commercial element treated appropriately, residential GDV assessed distinctly.
What that looks like in practice
- Typically 60-65% LTGDV where commercial is speculative
- Higher LTV where commercial element is pre-let to strong covenant
- Residential exit either sales or investment refinance
- Commercial element sometimes held long-term, resi sold to fund
- Exit finance available on completion for either element
Typical timeline
- Pre-applicationCombined appraisal, resi vs commercial value split.
- Weeks 1-6Lender selection, credit approval, valuation.
- Weeks 6-12Legals, drawdown.
- BuildTranched drawdowns, then exit strategy for each element.
Common questions
Can I get better terms if the commercial is pre-let?
Yes — materially. Pre-letting to a strong covenant transforms the risk profile and pricing.
How is the residential element valued?
GDV per unit using local comparables. Investment valuation if the plan is to hold rather than sell.
Exit strategy: sell the whole thing or split?
Usually sell resi units individually (better £/sqft), hold commercial for income. Structure the exit accordingly.
Send the scheme details
Mixed-use is specialist. We'll route to lenders that fund both elements together, not just one.