Buying a flat above a shop

MigsyBigsy

Hello,

just wondering if people have encountered problems getting a mortgage for a flat above a shop. If so, why?

many thanks

VIGILANT22

Plenty problems, that's why they're cheaper....The risk is higher for the lender...see a whole of market adviser, they will know who does and who doesn't

de1amo

beware when you buy such flats because i once had a place and ended up paying along with the 12 other residential flats all the insurance for commercial premises!--with flats above shops you can never buy the freehold and the leases are a mine field --it is quite common for the leases to block out the commercial aspect under the property but this can bite you on the !!!--eg the insurance and maintenence -all falls to you unless worded specifically---i would never buy another

Senior_Paper_Monitor

....... and don't forget they will be equally difficult to sell, for the same reasons.

de1amo

i fluked it because i sold to the freeholder because he thought he was a clever man and would develope above my place--i got near market value for such places but he got caught with 4 top floor flats before the market drop of 2003--no one even wanted to buy the whole block freehold last time i saw and the developement never happened--that flat nearly ruined my life!!-they are more suited for rental returns if bought at the right amount--low!!

Thrugelmir

MigsyBigsy wrote: »

Hello,

just wondering if people have encountered problems getting a mortgage for a flat above a shop. If so, why?

many thanks

Shops can change use....... always a danger you may may find yourself living above a curry house for example. Open till late.

worriedindebt

many mortgage companies either wont lend or will demand higher deposits for flats above shops. i think its viewed a higher risk for fire, flood, damage etc.
that was my experience when i looked at buying one a few yrs ago

Dan_1976

Look at the use clauses within the commercial properties, your solicitor would help.

Lenders do not like pubs, off licences, food outlets, supermarkets or crack dens!

I imagine you will need a big deposit. One issue is the shop may be a little old ladies fabric shop but the terms of use may be broader and you could find your self above a curry house!

I would not bother, but in some parts of London and other big citys they can be of high value!

de1amo

for years i owned above a solicitors office--and despite my objections the use got changed to a restaurant with the air venting coming near my place--another one of the freeholders developments--a plus side of the flat was that it was big and always rented out wesll