Flat above a hot food takeaway - impossible to find a lender

[Deleted User]

Most high street lenders won't offer lending.  Is it really this difficult to get a mortgage on this type of property?

amnblog

Forget it, don't make it your problem

MWT

Sarah_New said:

Most high street lenders won't offer lending.  Is it really this difficult to get a mortgage on this type of property?

Trouble buying and more trouble selling, find somewhere else is the best option by far...

mjm3346

Sarah_New said:

Most high street lenders won't offer lending.  Is it really this difficult to get a mortgage on this type of property?

Yes, which is why they would be expected to be cheaper than a similar flat not above that type of premises as they are limited to mostly cash buyers.

From one of the comparison sites

"If the flat you're looking at is above a commercial property, you may find it more difficult to get a mortgage. The lender will consider the business below the flat as this'll influence whether you're offered a mortgage or not, and sometimes the maximum loan-to-value available.

Key features a lender could check for include:

Noisy commercial activities located nearby, especially if it takes place during unsociable hours, for example if the flat is above a nightclub or bar

Pungent smells emanating from a nearby business, for example a restaurant, cafe or takeaway on the floor below

Unsatisfactory access to the flat, for example if you have to go through the business downstairs to get into your home

This could even apply if your flat is close to a commercial establishment and not directly above it.

K_S

Sarah_New said:

Most high street lenders won't offer lending.  Is it really this difficult to get a mortgage on this type of property?

@sarah_new Generally speaking, it is not everyone's cup of tea. There's also a big difference in approach based on where it is. For example I am fairly confident I could find a suitable lender to lend on a £350k 1-bed flat above/diagonally-above a takeaway on a south London high-street but the exact same kind of flat would not be acceptable if it were in (say) a small town and valued at £120k. It's all about how saleable the flat is in the local market. Your LTV will also play a part, as will specific features of that individual property.

As you've used a broker and they've thrown their hands up, then it's probably best to move on unless it's very low LTV and you're happy to consider silly rates.

[Deleted User]

Thanks all.  I had my heart set on it but i guess I should look for somewhere else.

greatcrested

I lived (rented) above a KFC when in my 20s. The free chips after the pubs shut were a bonus, but would I buy? No way! The smell.... the grease..... the noise....

Barny1979

The higher risk of a fire presumably too would put insurance premiums up etc?