Buying flat above a shop, advice please

BeauLiLuLu

Just my experience.....

I tried to purchase a flat above a commercial property last year - ticked all the right boxes, size, location, garden etc. Even though the commercial premises didnt have a license for food, and the Freeholder said that they would never apply for such a license, the lender I was going with still refused the mortgage based on the property.
So unless you're in an area (I guess like London) you might even struggle yourself to get a mortgage? Let alone in a few years when you come to sell, things might have tighened up even more, so you could find yourself stuck with a property unable to sell or only to a limited (cash buyer) market?

As it turns out, I've since found a nice little flat in an even nicer area, a little bit smaller, but still has everything on my *must have* list!

hazyjo

As above, I expect you'll find it's all flats above commercial premises. They may have changed that slightly from when prices were down - but there's no guarantee we'll not hit recession again and it'll be unmortgageable.

Also, like someone said, it's not just food places that make it unsellable. A shop near me has just changed into a funeral directors. I have a friend who lives over one and it doesn't bother her (they work there), but it would put a lot off. Plus dry cleaners will put people off. Gambling premises too. Off licences. Newsagents. The list goes on...

Just tread carefully!

Jx

Owain_Moneysaver

Betting shops have the telly or racing commentary on all day - often on ceiling speakers. At the moment they're classed as 'financial and professional' so difficult to object to change of use.

Richard_Webster

Lenders are fussier about flats over shops and some will not lend on them. So even if you get a mortgage OK, a future buyer might not be able to do so.

Also because wording of commercial shop leases and residential flat lease is normally substantially different there is a danger that they won't have been synchronised properly and you might end up paying an unfair proportion, say, of insurance costs.

Feyla

I was just trying to contact the agent to get the building owners contact details but it had sold Oh well.

Thanks for the replies anyway, I'm sure the info will come in handy in the future!