Buying a flat above commercial premises

alice93

Hi all,

I'm a first time buyer looking to buy a 1 bed flat in South East London, I've found a place I love in an area I like (Forest Hill) within my budget, the only downsides are its above commercial premises and on the South Circular.

The commercial premises aren't actually used (and haven't been for several years) and the road noise doesn't really bother me so neither are issues from a living in it point of view but the potential issues with resale and that the commercial property could change are worrying me.

Is this likely to be a major issue or am I be overly cautious? Any advice on particular questions to ask/things to look out for would be really appreciated!

Bossypants

A major factor will be what sort of commercial premises. What sort of quality is the premises and street where it's on? Is there permission for an oven on the premise?

Basically, you need to consider what sort of enterprise is likely to want to move in. A high end clothing shop? No problem. A takeaway? Steer well clear.

pinklady21

Some lenders may be unwilling to lend due to the proximity to the commercial premises.

boliston

just had a look at forest hill on streetview and the south circular there just looks like a typical town centre road rather than a motorway style road like the north circular and it has an 'overground' station which would be handy to live near - as others have said the main issue is the type of premises - on the continent it is pretty 'normal' for flats to be above shops, cafes etc which makes a lot of sense and it is only here in the uk that it is considered a 'problem'

Hoploz

Check with your broker whether you'll be able to get a mortgage on it ... And bear in mind the value will be lower than a similar flat away from commercial premises. And this may also effect future saleability.

Savvy_Sue

I'd want to know what state the commercial premises were in, if they've not been used for some years then is it possible there could be damp and stuff creeping upstairs?

But then I wouldn't want to live on the South Circular ...

davidmcn

I'd be wondering why it's been empty for so long. Check the council website for the planning history - ETA, done that, if it's the only obvious one on Rightmove then there is a very recent planning permission for the shop to be converted into a flat. Which at least gets rid of the "commercial premises immediately downstairs" issue, though means you might be above a building site for a while.

Mortgageability could still be an issue given the other neighbouring commercial premises and the busy road - not impossible but I expect it will rule out some lenders, and the same will apply whenever you remortgage or sell.