Can I buy a flat with shop below?

Boogiecat

Hi, I wonder if anyone has experience or advice for the following situation:


I'm selling my flat and doing my homework on Rightmove ( for homework read torturing myself with houses I can't buy till I sell mine!) I've seen a gorgeous flat - 4 bedrooms, lovely sunny courtyard at the back, but it's classed as a commercial property as there is a shop beneath.


To me it's a no-brainer: buy it to live in and rent the shop out which will cover most of the mortgage payments, OR buy it to live in AND open a shop myself ( which I've been thinking about recently). It's in the area I want to be, the area has undergone development and a facelift and is very up-and-coming as a tourist attraction, the price is right, and there are other similar shops in the same area for the stuff I would be selling (cumulative attraction rather than competition). High footfall, free on-street parking, you get the picture.


Now, my mortgage company won't lend on the basis that the residential part of the property is more than 40% of the building. Can anyone recommend a good lender for that?


Although I have managed a shop for 10 years (over 15 years ago) , I have never owned one, so have no idea how much extra I would have to pay in business rates etc. I already know a bit about public liability insurance as I have been self employed before.


Can anyone please point me in the right direction?


Many thanks. :-)

rps2

https://www.gov.uk/introduction-to-business-rates
http://www.2010.voa.gov.uk/rli/static/HelpPages/English/faqs/faq146-what_are_the_current_multipliers.html

Busines Rate = Ratable value * Multiplier (45p average ).
So if Ratable value = £10000, BR = £4500.00

Boogiecat

Thanks rps2!

jgh

Boogiecat wrote: »

I've seen a gorgeous flat - 4 bedrooms, lovely sunny courtyard at the back, but it's classed as a commercial property as there is a shop beneath.

All the best I did this 15 years ago, and live over the shop. Once I've paid off the mortgage it means the shop rent is mine to live on. Or, open one of those shops that never seems to sell anything

I'd recommend seeking out a local insurance broker. The small additional cost in fees is worth it for the local and market knowledge you'll get.

I did once have somebody offer to buy the shop off me, but I didn't know how to value it for sale compared to the rent I would get.