Pub with residential planning permission - can I buy with residential mortgage?

Cherylnancollis

A derelict pub is up for sale in an area we are interested in moving to. We know that usually to convert a pub into residential you would need a business mortgage (which would require a much bigger deposit than we would be able to access), but this particular pub already has residential planning permission to convert into flats. However we would just be wanting to create a large family home (therefore making very few changes to the building). Does the fact the pub has already had residential planning permission granted mean that we are likely to be able to buy it with a residential mortgage? The pub has been on the market for a long time with no takers so I cant see the local planning office taking issue with it not being converted into flats.

marksoton

Cherylnancollis wrote: »

A derelict pub is up for sale in an area we are interested in moving to. We know that usually to convert a pub into residential you would need a business mortgage (which would require a much bigger deposit than we would be able to access), but this particular pub already has residential planning permission to convert into flats. However we would just be wanting to create a large family home (therefore making very few changes to the building). Does the fact the pub has already had residential planning permission granted mean that we are likely to be able to buy it with a residential mortgage? The pub has been on the market for a long time with no takers so I cant see the local planning office taking issue with it not being converted into flats.

So planning is not for what you want.

Re: the mortgage post on the mortgage board.

Do you have experience in property conversion? Be very careful if you don't. The fact the property has been on the market for a long time and no professional developer has snapped it up should say a lot.

Cherylnancollis

Thanks for your reply. There are a lot of similar empty properties in the area and also quite a few ready-made houses/flats that have sat on market for a long time so I dont think its particularly suspicious that a developer hasnt snapped it up (typical of many areas in the northeast where the recovery still has not reached reached us unfortunately). The property may not offer a developer enough profit to be worthwhile, but it would suit our circumstances perfectly, as we are looking to create a large, long-term family home on a relatively small budget (looking for something that is basically liveable but that we can make our own gradually over time).

No, we do not have experience in property conversion (just enthusiastic & ambitious diy'ers looking for a project to get our teeth into). We havent yet seen the inside of the property, so not sure exactly how bad a state it is in (obviously we would get full survey before purchase), but its all irrelevant if there's no chance of financing the purchase. As you say, the planning is not for what we want, I am just wondering if the fact it has planning to convert to residential means that we may be able to get standard residential mortgage. Have had a search on mortgage forum & couldnt find anything relevant to this topic, please can you post a link if you have seen something useful? I am new to this site, have I put this thread in wring forum?

dimbo61

You need to find out if it has a working bathroom and kitchen in order to get a mortgage

davidmcn

Cherylnancollis wrote: »

I am just wondering if the fact it has planning to convert to residential means that we may be able to get standard residential mortgage.

No, for a standard residential mortgage it would need to already have been converted. You might be able to get finance but it would be on commercial terms. One for a broker I think.

Cherylnancollis

It does state on floorplan that there is a kitchen & bathroom as it has a 3 bed owner's flat on the upper floor.

davidmcn

Cherylnancollis wrote: »

It does state on floorplan that there is a kitchen & bathroom as it has a 3 bed owner's flat on the upper floor.

If what you're proposing to do is buy any property (even a normal house) and completely redevelop it, you're not going to be able to do it on a normal residential mortgage. They don't know what the value will be of what you're building, and if you run out of cash half way through your project, they're left repossessing a building site, which is tricky to sell.

Cherylnancollis

I wouldnt be proposing to do anything major at all, would keep downstairs open plan, just take out the bar, & turn upstairs reception rooms into additional bedrooms. Theres already a kitchen downstairs. Would never be a building site, we would just move in as it is and change cosmetics gradually as we can afford to.

19jeni89

Hi there

I know this was a while ago, I just wondered how far you got with it as I a man also interested in doing something similar.
There is a pub with planning permission to convert to flats which we would like to purchase- wondered if this is possible on a residential mortgage? We would keep it as a flats conversion.
Many thanks
Jeni

anselld

19jeni89 wrote: »

Hi there

I know this was a while ago, I just wondered how far you got with it as I a man also interested in doing something similar.
There is a pub with planning permission to convert to flats which we would like to purchase- wondered if this is possible on a residential mortgage? We would keep it as a flats conversion.
Many thanks
Jeni

A pub with planning permission is still a pub until re-development is complete. You won't get a residential mortgage at this stage.

davidmcn

19jeni89 wrote: »

There is a pub with planning permission to convert to flats which we would like to purchase- wondered if this is possible on a residential mortgage?

Please read my comments above.