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Should I buy above a shop
MIN
Posts: 2 Newbie
I am considering buying a new build flat above a commercial unit on a quiet street in Hackney, the shop and the flat have separate entrances.
The block of new builds that contains the shop and flat has been built by a housing association who are also the freeholder. I have been told that the use class is restricted to B1 in the lease which means it cannot be a food outlet and cannot create noise or other disturbance to the area.
The flat is already priced at around 15% lower than a similar flat not above a shop would cost. Everything else about the property is great, it's very large, has a huge outside space, is very close to public transport without being on a main rd and is in a part of London where house prices are rising and will continue to do so with the Olympic regeneration.
My question is ,how much of a risk is the commercial unit underneath? How likely is it that the housing association would grant a change of use in their own building that houses their own tenants and shared ownership occupiers? Would future buyers be put off by the shop? How difficult is it to get a mortgage ( mine is already approved).
The block of new builds that contains the shop and flat has been built by a housing association who are also the freeholder. I have been told that the use class is restricted to B1 in the lease which means it cannot be a food outlet and cannot create noise or other disturbance to the area.
The flat is already priced at around 15% lower than a similar flat not above a shop would cost. Everything else about the property is great, it's very large, has a huge outside space, is very close to public transport without being on a main rd and is in a part of London where house prices are rising and will continue to do so with the Olympic regeneration.
My question is ,how much of a risk is the commercial unit underneath? How likely is it that the housing association would grant a change of use in their own building that houses their own tenants and shared ownership occupiers? Would future buyers be put off by the shop? How difficult is it to get a mortgage ( mine is already approved).
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Comments
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Risk? You mean noise/smells etc? What hours can it open?
Shop keepers can apply for a change of use - doesn't mean it'd be allowed though...0 -
the commercial unit is currently empty. By risk I mean how difficult to sell in say 5/6 years time? I have read that some mortgage companies don't offer mortgages on these types of flats but I'm not sure how relevant this is to today's property market especially in central London ?0
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Personally I wouldn't consider buying a property above a shop. I remember when I was looking for a flat I saw some flats above shops on Rightmove for months and months. The flats appeared to be nice from the photos but they weren't shifting.0
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It can be difficult raising a mortgage on anything over a shop - this could cause you problems - and in the future it could cause a potential buyer problems, especially if lending on places above shops became more stringent.0
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In central London, it's all different - there's no issue with flats above shops, cafes, etc. Resale is fine, mortgaging no problem....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0
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I have been told that the use class is restricted to B1 in the lease.
Office then rather than shop. Of course no one needs to tell you that offices can become shops and vice versa with planning pemission, although I dont see this as a planning question.
I think your will need a legal opinnion from someone (solicitor?) that knows leases and how easy it will be for the HA to change the unit lease should they want to turn it in to a shop (A1) or chippy (A5) at a latter date.0
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