keen on residential flat but its over commercial businesses

ottie

Hi,

Please can you advise. We have seen a flat we like, but are anxious about the long term potential risk. We know that we cannot read or know the future, but is the unknown sufficient to not proceed with an offer?

What can we ask now, that would enable us to have some foresight into what might or might not be possible dangers.

There are 4 flats on each floor above the businesses and our potential purchase is 2 floors higher, below us would be large coffee shop and popular gym.

Is there any generic advice that would advice us as first time buyers to just go for it and live for the now, or proceed with great trepidation/ caution!

ruggedtoast

Not all lenders will offer a mortgage on flats above shops. Other than that its hope for the best. The business could stay as they are, or turn into an open fronted fish mongers with a license to play Dubstep until 11pm.

ManuelG

ruggedtoast wrote: »

Not all lenders will offer a mortgage on flats above shops. Other than that its hope for the best. The business could stay as they are, or turn into an open fronted fish mongers with a license to play Dubstep until 11pm.

11pm would be nice, it's the 3am kebab eaters you have to watch for!

ottie

Thanks both, I guess what you are both saying or implying is that there is really too much risk in purchasing a residential flat over a commercial business, and to look at alternative options.

ognum

ottie wrote: »

Thanks both, I guess what you are both saying or implying is that there is really too much risk in purchasing a residential flat over a commercial business, and to look at alternative options.

I looked at and made an offer on a flat above commercial premisis, due to the vendor dragging their feet with a lease extension I pulled out.

I am happy I did pull out because even though this is a fast moving market the flat is still for sale 6 months later.

I am afraid I would look for another option, it may be that this flat is in your price bracket simply because it's difficult to sell.

ruggedtoast

I wouldn't mind renting a flat above shops but I would be wary of buying one. It all depends on the flat, the price and the location of course.

dell12

A coffee shop will have A3 consent - which means it can be used by any restaurant or cafe. I would suggest that A4/A5 consent (drinking establishments/hot food takeaway) is unlikely to be granted given its position under a residential block.

If you're looking in London, I doubt you'd have too much trouble getting a mortgage on it either - somewhere in the North East lenders will be a whole lot less keen. Personally if it's a decent price and the block looks well cared for being over a shop wouldn't put me off at all. Why not knock on a couple of neighbours doors?

chris_aaaaa

You need to consider how much of the floor area is commercial, if it is over 25% you will not have the right to manage, so you could be tortured by a rogue freeholder.