Buying Old Pub – Change of Use

tp023

Spotted a pub that’s been granted planning permission for change of use to residential. With regard to purchasing the property, would this be a commercial sale or residential? I've no intention of using it as a pub but would like to live in the 1st/2nd floor residential area whilst I convert the downstairs etc.

Thanks

kirkbyinfurnesslad_2

Such a shame that you would consider doing that

lessonlearned

Are you asking about whether or not you would need a commercial loan as opposed to a residential mortgage??

If planning permission has been granted and assuming it has a kitchen and bathroom then it should be classed as a private dwelling, and should qualify for a residential mortgage.

However, the lender might require a retention of funds if there is a lot of work needing to be done.

My son has brought an old pub (it has been in residential use for 80 years now so these issues were not of concern). However, it has retained many of its old pub features (including huge cellars) and it's a lovely quirky old building and of course, being an ex pub the room sizes are very generous.

Hope you get it - I'm sure you will love it.

BTW - do you mean convert the ground floor bar area into living accommodation or were you thinking about some form of mixed use. If mixed use then planning restrictions could be tricky.

couponqueen123

kirkbyinfurnesslad wrote: »

Such a shame that you would consider doing that

surely its better to use it than let it rot if no one is willing to run the pub im ex landlady and the jobs got harder for less;)

when i look to buy in the new year pubs are on my list amazing places to turn in to houses especial if u have a underground cellar ;)

why do you think its a shame?:)

lessonlearned

Pub closures are at an all time high apparently.

Many of them are great buildings and can make beautiful houses.

Some of the larger ones can be made into great apartments.

I agree it's far better to reclassify these buildings and use them for residential purposes than allow them to fall into rack and ruin.

I think we could also do this with half of the empty shops on the high streets too. Far better than the bleak empty wastelands that so many of our towns have turned into.

There is a chronic shortage of good quality housing. These "brownfield" sites should be fully utilised.

kirkbyinfurnesslad_2

Its a shame from the prospect of yet another change of use from a pub to a house,

I dont disagree they are good buildings and as you say good sized cellers

Indeed the pub trade is harder etc, but still a shame.

kirkbyinfurnesslad_2

lessonlearned wrote: »

Pub closures are at an all time high apparently.

Many of them are great buildings and can make beautiful houses.

Some of the larger ones can be made into great apartments.

I agree it's far better to reclassify these buildings and use them for residential purposes than allow them to fall into rack and ruin.

I think we could also do this with half of the empty shops on the high streets too. Far better than the bleak empty wastelands that so many of our towns have turned into.

There is a chronic shortage of good quality housing. These "brownfield" sites should be fully utilised.

We have loads of brown field sites here which could be used and not greenfield, but where do the builders and planners want them to build, you guessed it!

tp023

Apparently it’s been commercially reviewed and it’s just not viable as a business. Other country pubs in the area (few hundred meters away) which are closer to the local village and serve the community better. Its habitable so the plan is to live in it whilst converting the downstairs (bar etc) back to residential (It was originally a farm house). Mortgage shouldn't be a problem.

It has planning for conversion back to residential but I was unsure as to how the sale would proceed. I'm assuming just a normal residential sale?

lessonlearned

Don't see any reason why not, but obviously your solicitor is the person to ask.

lessonlearned

kirkbyinfurnesslad wrote: »

We have loads of brown field sites here which could be used and not greenfield, but where do the builders and planners want them to build, you guessed it!

Don't get me started - this is a real hobby horse of mine. :rotfl:

We have over 1m empty houses. Add in all the empty shops, pubs, factories, warehouses etc and you can see there is a lot of potential housing going to waste.

Use up the brownfield sites first before carving up the green belt.

Yes some land may be contaminated, some may be unstable due to mining etc and perhaps not all brownfield sites are suitable for residential use but those areas could be greened and perhaps left as parkland. Towns and cities need green spaces as "lungs".

Oh if I ruled the world……...

observations_from_a_hill

OP, ask the seller if the sale price will be subject to VAT. This certainly used to be a horrid trap for the unwary, although possibly things may have now changed.

The existing use for the property is a pub. It is a business asset of either the brewery or the former licensee. A sale would therefore be a sale of an asset in the course of a business, or in the course of winding up a business, with VAT being chargeable on the sale price.

This VAT is potentially refundable in full 6 months after the property ceases to be a pub, ie 6 months after you implement the planning permission & change the use to residential.

In the meantime, you would be left with paying an extra 20% VAT on completion and still having to fund the works to make the pub part residential before you get the VAT back.

As I say, things may be dealt with differently now, but certainly speak asap to the seller/your lawyer/an accountant to see if there may be a problem - & also work out how you can deal with it.