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Mortgage - residential or semi-commercial?

sabi02
sabi02 Posts: 8 Forumite
in House buying, renting & selling
Hello, I am looking for some advice please, I am considering buying a property (a detached house with lots of outside space) with the plan to convert an outbuilding into dog boarding kennels. So I will be living in this property, and it will be the only property I will own, but I will be then running a small scale business. Can I still apply for a residential mortgage to purchase the house or do I need to look for a commercial mortgage? What if I was already living in a property with a residential mortgage and then decided to add boarding kennels - would I then have to change my mortgage or could I carry on with the existing residential mortgage? (I am aware of the licensing and planning permissions that I'd need but not sure about the mortgage situation). Thanks!
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Comments

  • armchaireconomist
    armchaireconomist Posts: 370 Forumite
    I would think it a residential mortgage but you will need permission from the lender. Get a decision in principle and speak to them before you do anything - lenders will differ on this.
  • armchaireconomist
    armchaireconomist Posts: 370 Forumite
    P.S. Make sure there are no restrictive covenants on the property. It isn't uncommon for their to be restrictions regarding running a business from a residential address.
  • csgohan4
    csgohan4 Posts: 10,600 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    Would the neighbours be happy with you running a potentially noisy business??
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • sabi02
    sabi02 Posts: 8 Forumite
    there is no neighbors :)
  • csgohan4
    csgohan4 Posts: 10,600 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    armchaireconomist wrote: »
    I would think it a residential mortgage but you will need permission from the lender. Get a decision in principle and speak to them before you do anything - lenders will differ on this.

    I would disagree with above, why run a DIP to check, when there are affordability calculators.


    Generally don't get a DIP unless you intend to go to full application with that particular product, it is unnecessary and wasteful of a credit search just for the sake of getting a DIP.


    I did not get a DIP until my house offer was accepted and my broker followed through the DIP with a full application immediately.


    DIP's are not worth the paper they are written on, it is the full application and offer that is important.
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • sabi02
    sabi02 Posts: 8 Forumite
    armchaireconomist wrote: »
    P.S. Make sure there are no restrictive covenants on the property. It isn't uncommon for their to be restrictions regarding running a business from a residential address.
    Thanks so much for your reply. How can I do that? Is this something that would come up during a planning application? The council where the property is based offers something like a 'pre-application advise' where I can submit the details of the property with details of the kennels size etc and they will do a pre-assessment and let me know if they would encourage me or discourage to make a full application there is a small fee to pay for this service but I feel it would be useful to do before I make an offer on the property to the estate agent. Do you think that if there were any restrictive covenants then I would find it out through this process? There is another property next to this one and it's a working farm in-between the house i'm interested with and the farmer's house.
  • sabi02
    sabi02 Posts: 8 Forumite
    csgohan4 wrote: »
    Would the neighbours be happy with you running a potentially noisy business??
    The only neighbour is a farmer - there is a large farm between his house and the one I am interested in - I already spoke to him and he said he would have no problems at all with me having boarding kennels on my land... there is nobody else in that area.... :)
  • csgohan4
    csgohan4 Posts: 10,600 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    sabi02 wrote: »
    The only neighbour is a farmer - there is a large farm between his house and the one I am interested in - I already spoke to him and he said he would have no problems at all with me having boarding kennels on my land... there is nobody else in that area.... :)

    I don't think he would have the same feeling, when the dogs bother the sheep and chickens he has
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • sabi02
    sabi02 Posts: 8 Forumite
    csgohan4 wrote: »
    I don't think he would have the same feeling, when the dogs bother the sheep and chickens he has
    that is not going to be a problem because of how it is all located and he himself has lots of barking dogs. the houses are so far apart and the farm fields are not even connected with the property. and I am talking 10 kennels not 50. Seriously the location is spot on - that't not my worry at all - it't the mortgage type / lender that I am trying to get my head around now....
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    sabi02 wrote: »
    Thanks so much for your reply. How can I do that? Is this something that would come up during a planning application?
    No, covenants are in the title deeds, nothing to do with planning. You get your solicitor to check this out.

    On the mortgage type - you'd need lender's consent for the change of use. Do you currently have enough income to support the mortgage anyway?
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