[Is this a breaker] new build apartments with ground floor Light Industrial Use?

helger

I am considering to buy an off-plan apartment in London which is currently under construction.

The ground floor of the building is planed as Light Industrial Use. As it is still under construction, I have no idea what kind of light industrial companies will come to occupy.

I have concerns in respect of noise, light, traffic (worker and truck), odors etc, as I know some light industries may operate two or three shifts and have truck shipments out in the late night or early morning hours and some produces a noise and/or odor...

Is it a big problem for the re-sell of such an apartment in the future? Is the buyer normally consider ground floor light industrial use as a deal breaker? I definitely don't want to buy an apartment that is not re-sellable. Any comments are highly appreciated!

davidmcn

helger wrote: »

Is the buyer normally consider ground floor light industrial use as a deal breaker?

Having any commercial occupiers in the same building puts you out of the market for some mortgage lenders, and valuers will generally highlight it as a potential marketability problem.

The fact that light industrial use is not a normal thing to have in the same building will make it even more likely that alarm bells will ring (even if in practice it might be less troublesome than, say, a flat in the same block as a pub or a chip shop).

How big are the industrial unit(s)? I think I've read of some developments where they're aiming the commercial units at very small start-ups, so probably not big machinery or three shifts of workers. But the very fact that it's a big unknown will put people off, and you won't have control over exactly what sort of use the units are put to.

helger

Thanks a lot for your comments David.

There is a total of 175 residential apartments within three buildings. The three buildings are connected with each other in the ground and first floors.

All ground floor is planned for light industrial use, probably 2500 to 2800 square feet in total. The first floor are gym etc. Residential apartments are located from second floor and above and have separated entrances.

This is a redevelopment of a previous business park. That is why the builder needs to retain the ground floor as light industrial use and return it back to the park owner.

helger

I was thinking that having light industrial units at ground floor might be good thing as there will be more demand for renting.

I am now a bit worried about the penitential marketability problem.

Seems a bit difficult to decide how to proceed.

goodwithsaving

What happens if the "shop" / industry changes? e.g. from a flower shop to a chain coffee shop? Wouldn't that be awful (experience of that).
Think of the future and if things change. Think of the traffic, noise, security...

Annie1960

Presumably the flat would be cheaper than the equivalent without the light industrial use?

This means you would get it cheaper when you buy, but would also sell it cheaper when the times comes for you to move on.

This assumes you could get a mortgage easily.

ethank

I think it depends on what moves in. It has a planned use, but depending on what actually takes out the units - it could be a future marketability issue. Personally, I would not take the risk.

helger

Thanks for all replied.

Annie - It is not lower priced. Instead, it is a bit higher priced as it is off plan and the developer priced the increase between now and actual completion.

rosie383

If it is priced higher and with a higher risk, then why are you attracted to it? Surely something cheaper with no future sellability problems would be more sensible.

helger

Thanks all. I decide not to take the risk and not proceed.

martindow

I think you made the right decision. Imagine paying over the odds and then living above a sheet metal works or a plastics factory ...