Mixed Use

Broadly speaking, the term ‘mixed use’ is given to a building or buildings that have been split into domestic units (flats, apartments, houses) and commercial units (shops, restaurants, businesses). It covers everything from small high street units, made up of one commercial space and a flat above, to sprawling developments with hundreds of homes and large commercial units all together.Mixed use property have multiple use classes for different floors or areas of the building.

Most mixed use units are configured vertically with certain floors dedicated to commercial space, and others dedicated to residential space. In larger developments, they can be configured horizontally with offices and homes located next to each other, however this is less common. Mixed use properties can have a variety of permitted uses.

Investors are drawn to mixed use commercial properties as, for tax purposes, they’re considered a solely commercial property. This classification means they have a higher stamp duty threshold (£150,000 compared to £125,000 for residential properties). Properties that can command more than one rent are also attractive, as you’ll have multiple sources of income every month. If demand for commercial properties goes south, you’ll also have the option of converting both units into solely residential ones, too. Furthermore, a purchaser of a mixed use property typically pays stamp duty on the whole property as a commercial unit which lowers their tax liability versus simply buying a residential property. In addition, mixed use properties benefit from multiple income streams and often have more attractive capital values than solely commercial properties.

The team has a proven track record and a well-established client base of institutional funds, property companies, private trusts and owner occupiers. Our contacts and market knowledge provides interesting investment opportunities for acquisition and increase sale proceeds by achieving the best disposal price. We advise clients throughout the whole real estate life cycle and provide a fully tailored service to suit clients’ needs. This might include implementing disposal strategies and structuring joint venture agreements to extract best value from asset transactions, or finding and acquiring sites on their behalf.

Our agency advice is often based on upfront strategic consultancy, option analysis and development feasibility guidance. In doing so, the team can advise on the appointment and management of design and professional experts, conduct due diligence, model cash flows and test scenarios, helping us to develop marketing and exit strategies to suit our clients’ core objectives.

Our investment consultants will source a range of investment products to suit your specific requirements. You receive detailed market analysis when preparing to offer on suitable products or marketing a property, and we negotiate on your behalf to secure opportunities and achieve the best price.

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