Another strong outcome delivered for our client.
We recently supported the acquisition of a mixed-use asset comprising:
• HMO across the upper floors
• Two commercial units at ground floor level
• A garage to the rear with separate access
This was an off-market, below-market-value opportunity with a clear asset management strategy:
→ Intensification of the HMO
→ Rental growth across both residential and commercial elements
→ Exit on a commercial valuation
Despite the mixed-use nature of the property, we were able to secure 85% LTV, which is an excellent result in the current market and reflects both the strength of the deal and the lending structure.
A great example of how the right funding approach can unlock strong opportunities.
Financing mixed-use properties can be complex due to the combination of residential and commercial elements, each assessed differently by lenders.
Factors such as income split, tenant quality, asset type, and exit strategy all influence terms and leverage. Many lenders have limited appetite for these assets, making structuring key. Securing the right funding often requires specialist knowledge and access to the right lending relationships.
