Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Mixed use scheme definition

What does Mixed use scheme mean? In practice, a mixed use scheme is a development combining residential accommodation with one or more non-residential uses (for example retail, office, hotel or leisure), delivered within a single building or across a wider site. The term is descriptive rather than a defined concept in legislation or case law, but is widely used in planning permissions, development agreements, agreements for lease and real estate finance. Key legal features include: securing planning permission for each component by reference to the relevant use classes (England & Wales: Town and Country Planning [Use Classes] Order 1987, as amended, including Class E and C3; Scotland:...

Structuring leasehold mixed-use developments: mitigating Right of First Refusal, Collective Enfranchisement, RTM, lease extensions and service charge risks via buffer leases, SPVs and management models (England and Wales)

Published by a LexisNexis Property expert

Practice notes

This Practice Note highlights the risks in mixed use developments that may arise where residential leaseholders of flats exercise:

their collective right of Pre-emption
their collective right to acquire the freehold
their collective right to manage
the individual right to obtain an extended lease

It also reviews the typical structuring approaches adopted to lessen the impact of those rights.

Why is structuring a Mixed use scheme important?

Mixed use developments combine one or more buildings in commercial, retail and/or industrial use with an element of residential accommodation. Even if the residential part is merely ancillary to the principal commercial purpose, such schemes must be handled with particular care.

Common pitfalls and challenges include:

Right to buy/right of pre-emption — The Landlord and Tenant Act 1987 (LTA 1987) grants qualifying long lease residential tenants a collective right of first refusal to purchase the immediate reversion to their leases if the landlord intends to dispose of that reversion. A landlord proposing to dispose must first offer it to the tenants, who have an irreducible two months...

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Web page updated on 22/05/2026

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