FTB - mortgage on flat above shop?

MattC123_2

Hi all,

Long time browser, first time poster here

Basically, me and OH are looking at getting our first place. We've found a rather large 2 bed flat near us which is going to auction in feb with a guide price of £50k.

We have access to up to around £7k for a deposit which should be adequate as they have said a 10% deposit to be paid on the fall of the hammer and the balance to be paid in 28 days.

My question is, are we likely to get a mortgage (in principle) on a residence above a commercial premises? The flat has private access (to the 2 flats) so isn't actually connected to the shop in any way other than being on top of it. The shop sells greeting cards so no chance of the deep frat fryer going up!

Any input greatly appreciated we are planning to view the flat early next week (although we've already seen it as a good friend of ours used to rent it!) and would like to get the ball moving as quickly as possible if its even worth trying for it?!

Thanks in advance,
Matt

GMS

Walk away. Unless you have much more funds you will lose your 10% paid on the day.

Wont get a mortgage for a flat above commercial at that level.

There is a reason it is in the auction. Please walk away.

McKneff

Always try to go for a little house, one day it will be totally yours,.

A flat will always be a leasehold and will never ever be totally yours.

MattC123_2

Thanks for the advice. Pretty much the same response as the Father in law!

The reason the place looked so appealing is the price - although as mentioned by GMS there is obviously a reason it's up for the price!

The trouble is, we have the £7k, but I'm on £9400 p/a at the moment (finishing apprenticeship next month) and OH is on £12k. My pay will rise to 12k too but I'm worried we won't get much more than £60k on a mortgage. We found a lovely new build coach house with 2 bedrooms and 2 garages up for £107k on firstbuy (134k full price) but I don't think we would get offered a mortgage on that property. The builder (bloor) said they would get a mortgage adviser to contact me and discuss options but I'm still waiting on that one

Annisele

The problem isn't the fact it's up for £50k. The problem is that it's up for auction.

Usually (not quite always) the only properties up for auction are the ones that can't be sold normally. So - why can't it be sold normally? There's a good chance it's not mortgageable, and only suitable for cash buyers who don't need a mortgage.

If you win the auction but the flat isn't mortgageable, you'll lose your 10% deposit.

If you want to find out whether it's mortgageable, you'll have to do (and pay for) all your searches in advance of the auction, and get your mortgage sorted in advance. If you don't win the auction, you'll then lose all of the money you paid out for the searches.

Auctions aren't really suitable for FTBS.