Management of mixed use schemes

Issues impacting on management of a mixed use scheme

Careful planning at the outset of a mixed use development is essential to navigate the complex issues set out in the Structuring mixed use schemes—overview topic. It is essential to plan how the component parts of the development fit together and who manages and who controls what.

The determining factors which the developer needs to consider are:

1. •

   the type of residential and commercial tenure to be offered, be that long leasehold interests and/or ASTs and commercial rack rent interests (see Practice Note: Residential flat schemes—common issues)

2. •

   the way in which the commercial and residential elements are to be managed

3. •

   whether the developer and investor will retain management responsibilities

4. •

   how the scheme will be structured to mitigate against the effects of residential rights to enfranchisement, the right to buy and the right to manage — see the Enfranchisement in mixed use schemes—overview topic and in particular Practice Note: Common structures for leasehold mixed use developments

5. •

   the developer’s exit strategy

The composition of the scheme and the issues below may influence how the developer/landowner