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Buying building with two flats, can I rent one out and get a residential mortgage?

Greveson
Greveson Posts: 18 Forumite
in Mortgages & endowments
I'm looking to buy a house (first time buyer) and I've seen an interesting property that is currently a (empty) retail space on the ground floor, and the above space is a self-contained flat (which is currently occupied by an assured shot-hold tenant). I would be interested in buying the property and converting the downstairs into a residential flat; then I would live in one flat and rent the other one out. My question is as the second flat will be self-contained will this be covered by a residential mortgage?

Additionally, if I lived in the current flat and rented out the retail space, would that be covered by a residential mortgage?

All of the research I've done mentions renting out rooms in your house. I can't seem to find anything applicable to this.

Comments

  • amnblog
    amnblog Posts: 12,771 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    This is a commercial lending arrangement, not a residential one - unless the second flat is on it's own legal title.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Greveson
    Greveson Posts: 18 Forumite
    amnblog wrote: »
    This is a commercial lending arrangement, not a residential one - unless the second flat is on it's own legal title.

    Would this be the case even if:
    1. I'm living in the flat
    2. I'm converting the retail to residential
    ?
  • amnblog
    amnblog Posts: 12,771 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Yes it would - its not about your intentions - it is about the current security.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    Greveson wrote: »
    Would this be the case even if:
    1. I'm living in the flat
    2. I'm converting the retail to residential
    ?
    As soon as it's converted you can refinance onto a normal residential mortgage.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • Let_Us_See
    Let_Us_See Posts: 1,319 Forumite
    Really? Two residential properties on one title? :o
This discussion has been closed.
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