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Potential BtL with a difference - flat with shop
AdrianC
Posts: 42,189 Forumite
Folks,
BtL with a flat is utterly straightforward - but one we looked at the other day has a shop with it... It's the entire building, freehold. 2bed flat on 1st and 2nd floor, ground floor and cellar partitioned off as retail.
It's currently let on a short term casual basis, on a reduced rent to reflect that, but the tenant would apparently have no qualms about staying. I think that'd work for us, in the short term, at any rate.
It's a small town in the shires, reasonably thriving chain-free high street, no huge retail developments for tens of miles around, and none likely. I s'pose you could call the precise location of the building "A-".
The shop's rental income would be low - allegedly, around half that of the flat. Without that, the yield's not great. With it, it's very decent.
Anything that should or shouldn't scare us off about the concept? The usual google-fu doesn't turn much up, apart from commercial tenancies being much more flexible and uncontrolled as a concept than residential.
Would you?
BtL with a flat is utterly straightforward - but one we looked at the other day has a shop with it... It's the entire building, freehold. 2bed flat on 1st and 2nd floor, ground floor and cellar partitioned off as retail.
It's currently let on a short term casual basis, on a reduced rent to reflect that, but the tenant would apparently have no qualms about staying. I think that'd work for us, in the short term, at any rate.
It's a small town in the shires, reasonably thriving chain-free high street, no huge retail developments for tens of miles around, and none likely. I s'pose you could call the precise location of the building "A-".
The shop's rental income would be low - allegedly, around half that of the flat. Without that, the yield's not great. With it, it's very decent.
Anything that should or shouldn't scare us off about the concept? The usual google-fu doesn't turn much up, apart from commercial tenancies being much more flexible and uncontrolled as a concept than residential.
Would you?
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Comments
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The conveyancing is a bit more complex than for 'residential-only'.
Ensure that your solicitor verifies all letting details: shop and flat.
Are there two separate Letting Agreements or only one?0 -
Jeffrey_Shaw wrote: »The conveyancing is a bit more complex than for 'residential-only'.
Ensure that your solicitor verifies all letting details: shop and flat.
Are there two separate Letting Agreements or only one?
The flat is currently occupied by the couple who own the whole freehold building.0 -
You need to discuss this with a mortgage advisor as I understand that many mortgage providers will not lend on mixed use premises, certainly a poster on another forum cannot sell a house with holiday lets in the yard.
That might restrict your potential future purchasers.If you've have not made a mistake, you've made nothing0 -
You need to discuss this with a mortgage advisor as I understand that many mortgage providers will not lend on mixed use premises, certainly a poster on another forum cannot sell a house with holiday lets in the yard.
That would not be a direct issue. Cash purchase.That might restrict your potential future purchasers.
Mmm. That might, of course, be an indirect issue.0 -
If the shop and flat are on the same title, it's a commercial, for lending purposes.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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kingstreet wrote: »If the shop and flat are on the same title, it's a commercial, for lending purposes.
Would there be business rates on the whole or a mix of business on the shop and CT on the flat?If you've have not made a mistake, you've made nothing0
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