Flat NEAR Commercial Premises - Big Risk?

stefs4

Hi, I had an offer accepted on a nice flat in a 3-storey building off a main-ish road in East London. I've lived in the area for many years and feel that it's a sought-after part of East London, with long term rentability (if needed).

I started reading online about having commercial properties nearby and it's starting to give me doubts. The property has a bookies near the entrance, and a takeaway in the building next door. Would these be considered to be red flags?

Here's an image of the flat and the 2 premises.

davidmcn

That looks like in the same building i.e. above the take away, not just "near". So yes, problematic for lenders.

Kynthia

A possible problem with properties above commercial premises is that if you happen to be selling during a dip in the market, buyers will skip less attractive properties with potential downsides as they can afford to to buy something a little better. However considering this property is based in London I can't imagine any property would ever drop low enough that it wouldn't be snapped up by someone hoping to get on the property ladder.

Another issue is that lending criteria can change. You may have no problem buying now but when you come to sell you may find your buyers struggle to find a lender as who you used no longer lend on buildings that tall or where there is a take-away.

elverson

Assuming you're planning to buy with a mortgage? Speak to a mortgage broker as they will know which lenders will and won't take this on.

datostar

Bookies are heavily regulated and age restricted, and have to be very careful about conduct on and immediately around the premises. If a pub was next door that might be more of a problem with patrons nipping in and out of the bookies between pints, but even they are more interested in getting a bet on than causing trouble. Seems nit-picking if mortgage companies take exception to them.

camptownraces

First, concerns about mortgagability.

But, are you planning to live there yourself?

If so, bookies should not be too much of a worry, it's a declining business these days with most customers playing their fruit machines.

The takeaway would concern me more though "OPEN 11 till LATE". How late: find out first. If there's cash machine anywhere near - that would concern me too.

boliston

Surely it's handy to have a local cash machine? What harm could it cause?

stefs4

camptownraces wrote: »

First, concerns about mortgagability.

But, are you planning to live there yourself?

If so, bookies should not be too much of a worry, it's a declining business these days with most customers playing their fruit machines.

The takeaway would concern me more though "OPEN 11 till LATE". How late: find out first. If there's cash machine anywhere near - that would concern me too.

Yep, I'd be living there. That takeaway is open until 11pm but I suspect any future food place that opens up there can easily apply for a later license?

There's actually a bit of distance between the food place and the flat, as it's slightly further back from the main road... see here: http://imgur.com/a/qi9xD

davidmcn

stefs4 wrote: »

There's actually a bit of distance between the food place and the flat, as it's slightly further back from the main road... see here: http://imgur.com/a/qi9xD

Doubt that makes a difference from a perceived disturbance point of view, and if it's part of the same service charge regime then that's also an issue (as commercial premises often don't feel part of the same "community" as the flats and resent chipping in for "your" roof / stairs etc).

ACG

London is a bit of an exception when it comes to being above commercial properties. I am not sure how you would fare with a bookies and a take away however.

Speak to a broker, I have had examples in the past where I have sent a google street map link to the lender to speak to the srveyor prior to applying.

hazyjo

datostar wrote: »

Bookies are heavily regulated and age restricted, and have to be very careful about conduct on and immediately around the premises. If a pub was next door that might be more of a problem with patrons nipping in and out of the bookies between pints, but even they are more interested in getting a bet on than causing trouble. Seems nit-picking if mortgage companies take exception to them.

One very near me had an armed robbery take place - I should imagine they're high risk for that, not just the clientele. Can see why lenders would get jittery.