2 bed Flat De-valued massively by commercial premises

theartfullodger

It's odd isn't it, we don't get people complaining when pizza caf!s or massage parlours or undertakers premises are replaced by nice new residential properties & neighbouring property stuff goes up in price:

Some you win, some you lose. Same as any investment: Life is like that, can't change it. But many people still expect compo when, say, some cunning plan goes wrong.

If you want a guaranteed safe place for your money/investment, sorry there ain't one ...

Property is a speculative investment: Just think what would happen to prices if, say, ISIS/L war really kicks off or Ebola devastates most of Africa.. - both of which we fervently hope never happens.

Artful: Who put £15k into Northern Rock 2 days before it went t*ts up.. The wife was most upset & worried for a bit...

J_i_m

In my perception (and I accept that this is a biased view) a flat directly above shops/take away restaurants, and within in louting distance of a pub is eminently less valuable than a maisonette in a cul de sac.

This is because I am put off by the probable disruption caused by such a location. The inevitable noise, traffic and groups hanging around would almost certainly have a negative effect on the 'quiet enjoyment' of my home.

So for me, to even consider renting or buying such a place the price would have to be significantly and I do mean significantly lower than the cul de sac option.

For me, my home is part of my lifestyle, and location is important. some people may be attracted by the doorstep proximity of the local takeaway, bookies and pub but personally I'd find it repellant.

Atomix

jaylee3 wrote: »

I am not sure that I agree. Zoopla has a house my neighbour bought in 1998 as having a value of £45,000. It's now worth about £130,000!

Need to re-read the post



Quote:
Originally Posted by Guilefox

Is Zoopla really that INaccurate!
Yes - it is !
* If any of my posts have helped you, my favourite charity is MyelomaUK *

Guilefox

Finally had a chance to catch up with this thread.

I agree the Surveyor is working for the bank and as such will be cautious. However if we planned to take out some equity to renovate it, it would add value to the property if we sold it, and the an over cautious surveyor valuation would mean nothing except that we cant use any equity to do the place up. Just our own money.

All the flats in this high street are rented out. And most are above fast food places/pubs. It is a very lively night-life based town and very very popular with youngster who rent out these places. RBS knew about the pub and blockbusters (which was actually busier than the Dominoes).

I personally think we have been rather unlucky with the surveyor. As it is purely down to their opinion. Sure estate agents mark the price up and the banks Surveyor marks it down. WITHIN REASON. Currently we have a strange situation with estate agents inflating the price here. The real price (as someone mentioned) is what people are willing to pay and we know what that is.

With Surveyors I've found its all about luck. The one we had was just bad luck. We found out he never even put in a price to RBS just told them "property above commercial premises" thinking they would cancel the deal. They had to get back to him and say "yes we know its above Commercial premises we lent against it before". So then he came back with a very low valuation rather embarrased (he found out we chased him up).

I certainly agree it is a speculative market. you have no control over what happens tomorrow. Fingers crossed for all those out there with their surveyors! Win some lose some, we lost this one!

emcap

Guilefox wrote: »

Finally had a chance to catch up with this thread.

I agree the Surveyor is working for the bank and as such will be cautious. However if we planned to take out some equity to renovate it, it would add value to the property if we sold it, and the an over cautious surveyor valuation would mean nothing except that we cant use any equity to do the place up. Just our own money.

All the flats in this high street are rented out. And most are above fast food places/pubs. It is a very lively night-life based town and very very popular with youngster who rent out these places. RBS knew about the pub and blockbusters (which was actually busier than the Dominoes).

I personally think we have been rather unlucky with the surveyor. As it is purely down to their opinion. Sure estate agents mark the price up and the banks Surveyor marks it down. WITHIN REASON. Currently we have a strange situation with estate agents inflating the price here. The real price (as someone mentioned) is what people are willing to pay and we know what that is.

With Surveyors I've found its all about luck. The one we had was just bad luck. We found out he never even put in a price to RBS just told them "property above commercial premises" thinking they would cancel the deal. They had to get back to him and say "yes we know its above Commercial premises we lent against it before". So then he came back with a very low valuation rather embarrased (he found out we chased him up).

I certainly agree it is a speculative market. you have no control over what happens tomorrow. Fingers crossed for all those out there with their surveyors! Win some lose some, we lost this one!

All I can you are denying the facts here.

jayss

Problem is now the change of use has gone through is that it can change from pizza to kebab to curry.

Guilefox

Since this post two local estate agents have valued it at £260 and £275 so something is not right here.

I think we are going to either, as someone suggested, rent it out (will be nice return at even the ridiculous value from surveyor) or move to a new lender (who uses a different surveyor!)

silvercar

jayss wrote: »

Problem is now the change of use has gone through is that it can change from pizza to kebab to curry.

What is the difference?

jimbog

silvercar wrote: »

What is the difference?

smells become more of an issue.

https://forums.moneysavingexpert.com/discussion/5057223

Guilefox

Digging out this thread from last month as I have an update! If you’re just reading this.

Quick summary - Situation is even worse than we thought.

- Bought flat.
- Four years later did it up.
- Council ignore protest and grant change of use (from shop to food outlet)
- Dominoes move in.
- Our flat is up for remortgage.
- Shocked to discover it is worth same as it was 8 years - so effectively devalued at current inflation rate.
- Discover no lender will now touch it with a barge pole. *NEW*


Our lender RBS offered to remortgage at absolutely staggering higher rate. Obviously their surveyor had told them that the value was unchanged in 8 years at £200k. We did not agree with valuation. But maybe he was right.

We decided to go to MSE's recommended broker London & Country Mortgage brokers to see if we could get more options..

Their response, due to new lending criteria and legislation:
- 60% of lenders would not touch it at all due to Commercial premise below.
- The rest also would not lend once we mentioned a food outlet below.
- Apart from HSBC and Lloyds (who you have to go to independently).

Surely no one can get a mortgage then noone can buy it (excluding private investors cash buyers). So surely it's value has plummeted? What about everyone else living in flats above food outlets around the UK?

So we (and the rest of the privately owned flats) are now mortgage slaves to RBS in negative equity?

Thanks to new lending criteria, and local council planning

:eek: