Possible mixed used property - Halifax mortgage accepted already

arsy20

Hi,

We have had a an offer accepted on property that could possibly be classed as mixed use. It is on a corner plot and is a 6 bed detached house with a 'corner shop' attached to the house. There has been no business on the property, as per the vendor, since 2000. The 'corner shop' section has been converted into a extra living room. We will be using as a living room as well. There will be no business at the property.

We applied for a mortgage through Halifax. A PHYSICAL valuation was carried out and we were offered a final mortgage offer on the property. We are going through the conveyancing process and this was discussed with the lawyer and they advised we will complete the searches and see what results are and go from there. I just wanted to confirm if this could bring any issues going forward?

Thanks

eddddy

arsy20 said:

We are going through the conveyancing process and this was discussed with the lawyer and they advised we will complete the searches and see what results are and go from there.

I imagine your solicitor means they will check the planning class of the shop part. If the shop part has a planning class of "Dwelling House" (e.g. somebody in the past has got planning consent for change of use from "Retail Outlet" to "Dwelling House") then everything will be OK.

If it doesn't have a planning class of "Dwelling House" but has been used as part of a "Dwelling House" since 2000, then no enforcement action can be taken - so it's probably OK anyway.



If you're uncertain about this kind of thing, I guess it's best to mention it to your solicitor.

But I guess some people might have decided not to mention this kind of thing to their solicitor, and hoped it wouldn't be flagged as an issue - and maybe got a 'certificate of lawful development' at their leisure after completion. (Which could take up to 8 weeks.)

Your solicitor also represents your mortgage lender, so now the solicitor is aware of the potential issue, it may introduce delays. For example, if the solicitor advises the mortgage lender that a 'certificate of lawful development' is required before exchange of contracts, that might take an extra 8 weeks. Or perhaps indemnity insurance would be acceptable to the mortgage lender.

arsy20

eddddy said:

arsy20 said:

We are going through the conveyancing process and this was discussed with the lawyer and they advised we will complete the searches and see what results are and go from there.

I imagine your solicitor means they will check the planning class of the shop part. If the shop part has a planning class of "Dwelling House" (e.g. somebody in the past has got planning consent for change of use from "Retail Outlet" to "Dwelling House") then everything will be OK.

If it doesn't have a planning class of "Dwelling House" but has been used as part of a "Dwelling House" since 2000, then no enforcement action can be taken - so it's probably OK anyway.



If you're uncertain about this kind of thing, I guess it's best to mention it to your solicitor.

But I guess some people might have decided not to mention this kind of thing to their solicitor, and hoped it wouldn't be flagged as an issue - and maybe got a 'certificate of lawful development' at their leisure after completion. (Which could take up to 8 weeks.)

Your solicitor also represents your mortgage lender, so now the solicitor is aware of the potential issue, it may introduce delays. For example, if the solicitor advises the mortgage lender that a 'certificate of lawful development' is required before exchange of contracts, that might take an extra 8 weeks. Or perhaps indemnity insurance would be acceptable to the mortgage lender.

Hello,

Thank you for your detailed response. Sorry for the late reply. I think what you said kind of makes sense (sorry we don't have much experience in buying houses). Local authority and drainage searches have been applied for. Solicitor said we would wait for contracts from vendors solicitor to confirm any commercial aspect in the contract. There were not and normal residential searched were applied for on the 10/05. So fingers crossed!