Your Business and Industry
Our approach to mixed-use mortgages
Like any lender, it’s crucial to ensure that intermediary partners fully appreciate our strengths from a product, criteria and service perspective as lines can sometimes become a little blurred, especially when operating under the ‘specialist’ banner.
Providing greater levels and layers of clarity around exactly what we do, and how we do it, was one of the main reasons why we recently split our proposition into three distinct brands - Buy to Let by Foundation, Residential by Foundation and Solutions by Foundation.
The first two brands largely speak for themselves, although each come with their own USP’s and product ranges which fit within designated lending profile and risk boundaries. Although these profiles and boundaries are always under consideration. This is a factor evident in the launch of Solutions by Foundation as this was driven by rising levels of interest in even more specialist BTL properties, including those for mixed-use (part-commercial), larger multi-occupation properties and a range of mortgages for ex-pat landlords.
Why use Solutions by Foundation for complex BTL cases? Find out here.
Solutions
One particular area which accelerated the introduction of the Solutions by Foundation brand was the uplift in the volume of mixed-use mortgage enquiries experienced over the past 12 to 18 months. This type of solution may, at one time, have been seen purely as the domain of a commercial specialist, both from an advice and lender standpoint. However, for areas with differing degrees of residential elements, more options are emerging from those specialist lenders who have capacity, appetite, expertise and manual underwriting capabilities to complete this type business.
Case Study
For example, in a recent case, we had a client who already owned one buy-to-let property and recently inherited a large mixed-use property from her father. Over the years, the client’s father had converted the property which was currently configured as three large commercial units with 18 residential flats above these units. Due to the changes that had taken place to the property, some of the flats have their own leasehold titles while others didn’t. In addition, due to varying degrees of overlap in the configuration of the flats, this also created a number of flying freeholds.
We suspect that demand for mixed-use mortgages will continue to rise. And the advice process will continue to prove vital in helping landlords and investors to identify these opportunities and benefit from a range of viable and appropriate specialist solutions from lenders who are open, willing and able to transact this type of business.
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*This article was originally published on Best Advice
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