The lending barrier
A family business wants its corporate-trustee structure to purchase a shop with an apartment above. The business is less than 12 months old, full annual financials are unavailable and the property is regional.
How we approached it
Compare how lenders classify the actual mixed-use security and assess the trustee and trust documents. Establish whether the available BAS, bank statements and trading history satisfy an alternative-documentation pathway. Review any proposed guarantor security, rental income and exposure with the relevant advisers.
The outcome
An eligible lender might offer a suitable longer-term facility if the mixed-use property, trust structure and income evidence are accepted. A residential classification or 30-year term must be confirmed for that specific proposal.
What this means for borrowers
Residential floor area alone does not guarantee residential policy treatment. The security classification, trust requirements, trading history and guarantee terms all need to fit the same lender.
Questions about this case
Does more than 50% residential floor space guarantee a residential loan?
No. Classification depends on the selected lender’s policy and the actual property. Residential floor space is a factor to investigate, not a universal approval rule.
This is an illustrative scenario comparable to deals we have handled for our clients. Figures and outcomes are examples; lending remains subject to individual assessment.