Mortgage for a flat above a post office

cgkh

Hi,

I've read from a few places that applying for a mortgage for a property above a commercial premises can be problematic from the view of the lender due to added risk.

Is this something that is still prevalent in large cities (for example, Edinburgh), where a considerable proportion of the flats will be above commercial properties?

Also, as the flat I am interested in is above a convenience store/post office, is this less risky in the eyes of a lender compared to a pub/restaurant/takeaway?

Is there a rule of thumb as to how much a commercial property can reduce the value of a flat by?

Thanks.

kingstreet

Valuation and mortgageability normally based on 'surveyor's comments' which will determine lender attitude.

cgkh

Thanks for your reply.

The home report merely states:
"The subjects provide suitable security for mortgage purposes.
There are commercial premises in the block in the form of a convenience store and a Post Office and as such
this may restrict the number of lenders available."

As it says that it provides suitable security for mortgage properties, I'm hoping it'll be alright!

jlpike

Surveyors dont only value they will say a property is suitable security or not based on the banks lending rules. Some lenders will not lend on property next to commercial property at all some take a more pragmatic view. It would be wise looking into this as you may waste time and money on a application that my be declined. A broker may help as they will understand the lending policy of different lenders