Bank of England announcement & Mortgages above shops

mr_beef

My partner is having a nightmare with a flat she owns. I was wondering if anyone who frequents this forum might be able to shed some light on or offer any suggestions regarding her situation?

My partner owns a 2 bedroom flat in Walthamstow. The flat is very spacious and in good repair. However, it is on a main road and above a commercial premises. There is also Chinese takeaway next door. This has resulted in huge problems obtaining mortgages over the past couple of months.

The flat has been on a buy-to-let mortgage (with Kent Reliance) just over 2 years. The introductory rate on that deal ran out in April. My partner was unable to find anyone other than KR (who's rates are high) willing to lend on it. She was told that the proximity to the take-away was an issue and lenders are more picky with buy-to-let mortgages (by both a mortgage broker and by lenders she approached independently).

Considering the hassle getting a BTL mortgage (as well as other financial considerations), she decided to sell up. The flat went up for sale and she accepted an offer within a fortnight of it going on the market. Sadly, the prospective buyer has had the same problem my partner had and has pulled out. Literally no one is willing to even show up for a valuation. As far as we know, there is nothing about the buyer that might deter a lender.

My partner lived in that flat for 8 years before moving out and shifting it to a buy-to-let. She never had problems getting a mortgage on it in the past.

Are there no lenders considering flats above commercial premises at the moment? Even in an up-and coming area such as Walthamstow? Even at 40% loan to value?!

Is it likely the BoE announcement yesterday will have any influence on situations like this? Presumably the change in rules is designed to encourage lenders to lend. If so, does anyone have any idea how long it would take for lenders to reconsider?

Thanks

Jack

Thrugelmir

mr_beef wrote: »

Is it likely the BoE announcement yesterday will have any influence on situations like this?

No. Properties adjacent to or close by commercial premises have always posed issues. Speak to a broker to see if other avenues are available. Alternatively sit it out and wait for a cash buyer. Selling the property via an auction house is another exit route.

MortgageMamma

Yes there are lenders that would possibly look at this. You need a broker who will phone around every single specialist lender to check for you.


You may have been caught up with brokers who do not have access to specialist lenders - some brokers, despite calling themselves whole of market often work from restrictive panels.

cahillg81

By commercial what do you mean? Is there a block of flats or is it just one?


There will be options, not many but there will be a few.

mr_beef

There is one other flat and a shop in the building. The shop is a convenience store.

amnblog

Above commercial is one thing, but above a takeaway is as poor as it gets for having a lender look positively on the property.


I assume you have had a broker look at this for you?

mr_beef

Yes - London & Country were unsuccessful. The prospective buyer also tried a few brokers with no luck. Not sure who they were though.

cahillg81

Can you stick up a Google Street Map view of it? It may give a better understanding.

Brock_and_Roll

To be honest, IF the market stalls or goes down, you would not want to be left holding this particular baby so I would seriously think about putting it through auction where of course there will be cash buyers.