Application for food premises in my block of flats

saversfriend · 27 March 2012 at 11:36PM

Hi all,

I own a small flat and have lived here for almost 2 years. The flats are in a mixed use building, sharing with two shops on the ground floor and a fast food takeaway on the side of the building.

At our residents AGM, we were informed that a local restuarant, located next door to our building would like to buy the lease of one of the shops and extend into it. Due to the fact that they are a reputable company and would take appropriate measure to soundproof and comply with fire regs etc, we would have no problems with this in principle.

HOWEVER, our concern is as to how this could affect the likelyhood of future buyers being able to get mortgages for the flats as a restuarant would be A3 and I believe some mortgage lenders will only lend to flats above businesses if they are A1 and A2 classes of business (non-food shops and service providers such as banks and dentists).

Please would you advise from experience and knowledge how you think this would affect property value and mortgage sutiability, for the flats in the building and those directly above the new restuarant space.

This change of use aplication has not yet been accepted. If accepted, the flat management company would stipulate a clause not allowing kitchens or cooking to take place under the flats (only seating space).

Thank you for your help!

Fuzzyness · 28 March 2012 at 9:35AM

difficult to predict impact on values. some purchasers may like the fact that there is a restaraunt below the flat and would be happy to pay for that convenience. others purchasers may not. similarly difficult to predict how all mortgage lenders may view the impact of a flat over an A3 use.

have you looked at your Council's adopted Local Plan to see whether there are any policies about A3 uses being approved in certain areas/locations. if you want to protect yourself you can always object to the application once it is submitted on amenity grounds (noise, smells, etc) as well as increased parking etc.