Living above your business? Find the right finance route.

Our role is limited to non-regulated finance

Lenzie Consulting Ltd is not authorised or regulated by the Financial Conduct Authority. We only deal with non-regulated finance. Where regulated funding is required, we refer the enquiry to an FCA-regulated counterparty. We do not give regulated mortgage advice or arrange regulated mortgage contracts.

Why personal occupation needs attention

The FCA’s guidance explains that some mixed-use loans can fall within the definition of a regulated mortgage contract. Occupation as a dwelling by the borrower or a related person is relevant, alongside the other conditions in that definition.

The often-mentioned 40% dwelling-use threshold is not a stand-alone test for every arrangement. Nor is a lender’s residential-value split the same thing as the regulatory test. An appropriate qualified counterparty must assess the facts.

Tell us who will use each part

Be clear whether the flat will be let to an unrelated tenant, occupied by you or a family member, or used in connection with a trading business. Include any intended change after completion. Do not describe a home as an investment simply to fit a product category.

What a referral involves

If regulated funding is required, we will explain that it is outside our service and refer the requirement to an FCA-regulated counterparty. Before sharing your details, we will identify the proposed recipient and explain the introduction.

The counterparty is responsible for its own assessment, permissions, advice, terms and any application. A referral is not a promise of suitability, acceptance or funding. You can check a firm’s permissions on the FCA Register.

Why is a home above commercial premises a different enquiry?

A building can serve both a business and a household. The question is not simply whether a shop, office or pub occupies the ground floor; it is also who borrows, what security is taken and who uses the residential accommodation. Those facts can bring a proposal into a regulated category even where an estate agent describes the property as commercial.

A flat let to an unrelated tenant and a flat used as the borrower’s home are different occupation arrangements. A relative’s occupation can also matter. Explain both the present use and the intended use after completion. If the plan changes while finance is being considered, tell the parties handling the enquiry rather than assuming the original description remains sufficient.

Does a commercial mortgage label mean the loan is unregulated?

No. A product description or marketing label does not determine the legal perimeter. The FCA Handbook explains the conditions relevant to regulated mortgage contracts and includes guidance on mixed-use property. Applying those conditions can require consideration of more than the physical split between shop and accommodation.

We do not offer a calculator that labels a loan unregulated after a single question or a percentage estimate. Floor area, land use, borrower structure, occupation and the relevant exclusions need proper consideration where applicable. Our website’s enquiry questions are an initial routing aid. They are not a legal opinion, regulated mortgage advice or a determination by a lender.

What if you are buying only the flat above a shop?

Buying a leasehold flat above commercial premises is different from buying the whole shop-and-flat freehold. Establish the interest you will own and how the flat is accessed, insured and maintained. The use below may be relevant to the residential finance discussion, but the presence of a shop does not automatically make your flat purchase a semi-commercial investment mortgage.

If the flat will be your home, the enquiry needs to be considered through an appropriate regulated route. We do not provide regulated mortgage advice or arrange regulated mortgage contracts. Where regulated funding is required, we refer the requirement to an FCA-regulated counterparty, which must carry out its own assessment and explain its service and terms.

What if your business occupies the commercial part?

Business occupation and residential occupation should be described separately. Your trading company may use the shop while an unrelated tenant rents the flat, or you may run the business and live upstairs. Those are different facts, even when the property and borrowing amount look similar. An ownership diagram can help where a property company and trading company are both involved.

Do not assume that company ownership is a universal solution to a regulatory issue. It can create its own legal, tax and financing considerations, including guarantees and related-party arrangements. We do not recommend changing a structure to conceal residential use or to avoid an appropriate regulated assessment. The proposed arrangement should be explained accurately to the professionals considering it.

Which occupation details should you provide?

Identify every residential unit and its current occupier. Say whether the accommodation will be occupied by you, a relative, an employee, an unrelated tenant or guests. Explain whether occupation is connected to a business or a tenancy and whether it will change after purchase. If a detail is uncertain, mark it as uncertain instead of choosing the answer that appears most likely to obtain finance.

For a pub or hospitality property, distinguish a manager’s flat from guest rooms and from a separately let dwelling. For an office or shop, explain whether residents need to pass through business premises for access. These details do not alone establish the regulatory outcome, but they help describe the actual proposal to the counterparty responsible for assessing it.

What can we do when the requirement is regulated?

Our role is limited. Lenzie Consulting Ltd is not authorised or regulated by the Financial Conduct Authority and only deals with non-regulated finance. If regulated funding is needed, we refer the requirement to an FCA-regulated counterparty. We do not choose a regulated mortgage for you, give regulated mortgage advice or imply that our own business holds the counterparty’s permissions.

Before sharing details, we will identify the proposed recipient and explain the introduction. The recipient is responsible for its own assessment, permissions, advice, terms and any application it handles. You should understand which firm you are dealing with at each stage. An introduction does not mean a mortgage has been recommended or that funding is available.

How can you check a referral counterparty?

The FCA Register is the place to check a firm’s listed details and permissions. Match the legal entity and contact information, rather than relying only on a familiar trading name or a logo. A firm being listed does not mean that every service or product is within its permissions. The relevant firm should explain its role, service scope and charges.

Take time to understand whether you are receiving advice, an introduction or another service from that firm. Ask it to explain any documents or commitments you do not understand. The receiving firm will explain the options it can consider. Its assessment of the borrower and property is separate from the initial information submitted to this website.

Should you proceed with a purchase before the route is clear?

A purchase deadline does not settle the finance category or remove the need for assessment. Before making a contractual commitment that depends on borrowing, discuss the funding position and timetable with the appropriate professionals. An initial enquiry is not an agreement to lend, and general website information cannot confirm that a transaction can complete.

Prepare the address, particulars, price, deposit, intended borrower and occupation plan. Keep sensitive identity or financial documents out of the first enquiry message. If the requirement needs regulated funding, the next step is an appropriate referral rather than treating it as a non-regulated case because the property includes commercial premises.

Common questions