Flats Above Shops

Lolbot1

Hi All,

I have used MSE for years but this is the first time I've taken the plunge and asked advice of you wonderful people. Here it goes:

I am a first time buyer in Scotland (anyone with Scotland specific advice, raise your hand now!) and am currently in the process of mortgage applications for a property I have an offer on in Edinburgh.

I would love to know if anyone can give me honest and recent experience of getting a mortgage above a commercial premises in Scotland? Edinburgh and Glasgow are full of shops with flats above - that's how they often built originally. They can't all be bought by cash buyers?

Barclays have declined to lend because it is above a shop and now I am waiting to hear back on NatWest. Things move very quickly in Scotland and I am worried about how long this process is taking but am I right in thinking that the seller won't back out for another offer because other buyers might be in a similar situation?

And another thing, why oh why was none of this mentioned on the Home Report? The valuation did not say anything about being above a shop and I've seen loads that have sold recently which are similar!

Extra info about the situation:

Flat is currently rented and owner has no chain.

It is top floor, good condition, away from any smells or noise from the street.

It is in an attractive and popular area of the city. Lots of people wanting to buy and rent.

There is currently a very hot market in Edinburgh because of demand on properties of this kind.

teddysmum

I don't know anything about the buying side, but would you be happy to find that the business under your flat becomes a takeaway with lingering food/cooking smells ?

davidmcn

The mortgage valuation part of the Home Report usually does describe what the building comprises, I'd be surprised if it doesn't mention that it includes commercial premises? Though that's just for the lender's benefit, obviously you've seen the property anyway!

There will be mortgage possibilities, if restricted - probably best to go via a broker rather than try pot luck yourself. I suspect some lenders will apply different policies depending on what the local market is like - as you say, it's pretty standard for Scottish high streets to have several stories of flats above the shops.

Apart from change of use to less neighbourly uses, bear in mind the risk of the businesses not being keen (or able) to contribute towards common charges - e.g. you may have to persuade someone 3 or 4 floors below you to help fix the leaky roof which directly affects only your property.

rentmekid

Hi OP,


I have had the same problems in Glasgow and have managed to find out which lenders who will do this and who wont.


Very easy to resolve. PM me if you want further information

lovinituk

rentmekid wrote: »

Very easy to resolve. PM me if you want further information

Why can't you post it here so it helps others in the future?

rentmekid

am I allowed to name banks?

zagubov

Lolbot1 wrote: »

Hi All,

I have used MSE for years but this is the first time I've taken the plunge and asked advice of you wonderful people. Here it goes:

I am a first time buyer in Scotland (anyone with Scotland specific advice, raise your hand now!) and am currently in the process of mortgage applications for a property I have an offer on in Edinburgh.

I would love to know if anyone can give me honest and recent experience of getting a mortgage above a commercial premises in Scotland? Edinburgh and Glasgow are full of shops with flats above - that's how they often built originally. They can't all be bought by cash buyers?

Barclays have declined to lend because it is above a shop and now I am waiting to hear back on NatWest.

One of the four main local banks (RBS, BoS, TSB Scotland, Clydesdale) or one of the building societies might be more willing. Somebody with local knowledge can advise.

zagubov

rentmekid wrote: »

am I allowed to name banks?

People might think you're a spammer touting for business for your company I suppose but if you names more than one there's less risk of that, I think.

davidmcn

rentmekid wrote: »

am I allowed to name banks?

Yes, of course.

The brokers here don't because it might be viewed as them giving advice and come back to bite them, but the rest of us can recommend/warn against whoever we like.

Lolbot1

Thanks, that's useful to know.

Lolbot1

Whilst we are here, does anyone know why the home report value is always significantly lower than the market price? Do mortgage lenders take this into account?