B&B

Kaz1000

Hi All, we are buying a property that was residential that got converted to a B&B. We will solely use it for residential. We got a mortgage on it approved for residential after a physical survey was conducted by the bank. Our solicitor was first hesitant that the bank will lend on this type of property. We called the bank several times and asked the agents if our mortgage will be rejected as it was used as a B&B and also has a planning permission for B&B use. The agents mentioned it will come down to the survey. Well to our surprise the survey was positive.
The problem now is that our solicitor is going to go back to the bank to remind them it is a B&B. I'm not sure if he is trying to just ruin it for us. We plan to purchase and then within 6 months put in a planning application to move it back to residential.

Any suggestions or guidance will be helpful.

davidmcn

If it doesn't have planning consent for residential then the solicitor is entirely correct to point this out to the bank. If you're confident that the bank doesn't have a problem with it (and it's often the case that they don't bother clarifying this sort of thing in their instructions to the solicitor) then it won't be a problem. 

AdrianC

You are buying a property that was historically a B&B.
You had a mortgage offer.
You double-checked with the lender and your solicitor if they were absolutely sure the fact it used to be a B&B was not a problem.
The solicitor said he'd check with the lender.
You now think he's "trying to ruin it for you"...

Ramouth

Your solicitor works for the lender as well as for you (which is why you have to choose a solicitor on their panel).  They have a legal obligation to inform them of anything that can have a bearing on the resaleability of the property.  It is not personal.

Kaz1000

Hi AdrianC, it was a home that got planning permission for change of use to B&B around 2017. It still looks like a normal 4 bed home with one kitchen and 4 toilets. When we called the council, we were told they (current owners) are paying residential rates and therefore no need for any change of use. We spoke with the bank just before the survey and one agent said there should be a problem. The second agent said it will show in the survey and could be rejected.
Our solicitor said the bank will reject the offer.
So you see bank came through with an offer.

princeofpounds

What Ramouth said. The solicitor does not only work for you, they have a legal obligation to represent the bank's interests.

AdrianC

Kaz1000 said:

When we called the council, we were told they (current owners) are paying residential rates

Where in the UK is the property? England, Wales, Scotland or NI?

Only NI has "residential rates". Everywhere else pays council tax.

Kaz1000

It is in North Yorkshire and council tax F which the council agent checked and mentioned they pay residential rates. Also only 2 out of 4 rooms were used as B&B. Our aim is to make sure there is change of use submitted by the end of this year. Right now, I want to move in and have peace of mind as I'm around 5 weeks pregnant and family live around the new place. We have no one here for support.

Kaz1000

Thank you all for your advice.. valuable as always. Guess we might miss out on this property. 

davidmcn

Kaz1000 said:

Guess we might miss out on this property. 

Why do you say that?

Kaz1000

Hey Davidmcn, now that the solicitor is going to ask the bank if they are certain the residential mortgage is okay for a property that was used for a B&B. It is likely the bank will have second thoughts and reject it. I would have preferred someone on our team working for us rather than against us. Our intention is just to a get a lovely family home.