For more information on Mortgages for Flats Above Shops and Other Commercial properties please call us on T. See the chart below for how the amount you can borrow is likely to decrease further for flats above more risky commercial premises.
Mortgages for flats above shops If the flat youre looking at is above a commercial property you may find it more difficult to get a mortgage.
Flat above shop mortgage. Could potentially buy a property at great value as these properties are typically less expensive compared to properties that are not above or next to commercial sites. These will include the nature of the business which the flat is above. Flat Above Shop Mortgage Applying for a home equity loan is similar but easier than applying for a new mortgage.
The flats generally tend to be above retail shops or offices but not always. Here are the pertinent facts- The shop downstairs is a copy shop ie. Lenders generally do not accept flats above fast-food outlets restaurants licensed premises.
As a result when buying a flat above a shop you may have a more limited pool of potential lenders so it is worth consulting a mortgage adviser about this as soon as possible. 16 July 2012 at 147PM. We have the expertise to help in these circumstances 0131 618 2100.
020 7993 2044 or alternatively click on the below button. Flat above shop mortgage. The shop owner pays me 10 worth of ground rent per annum there is no service charge as all costs are shared equally as they arise including.
Im aware that flats above shops are a little different to normal mortgages so any help would be appreciated. Lenders will want to know what trade is being carried out in the shop below. Shops with associated smellschemicalsin flammables etc are also not acceptable by most lenders.
Access – A flat above a shop must be self contained meaning it must have its own entrance and satisfactory access routes into the property. Flats above commercial property have always posed difficulties and limited mortgage. A typical Loan to Value LTV ratio for a flat above a shop is up to 85 compared with 90 or even 100 mortgages.
It is open 9-5 M-F creates no noise smell and takes few deliveries obviously paper is the main material used. I unfortunately bought a freehold maisonette that resides over a flower shop below just over 2 years ago. We are buying a flat above a shop and Lloyds are giving us a mortgage no problem – BUT on the other hand this is a London location and the flat is above a newsagent they werent willing to lend if over a restaurant or somewhere with unsociable use whatever that means.
However most mortgage lenders will have some lending restrictions. Nearby commercial activities Lenders tend to feel less inclined to give out mortgages to flats affected by commercial activities such as. I own the freehold to the whole building with the shop owner owning a long lease below.
If it is something which would cause little disturbance to the owners of the flat such as a florists or estate agents it is less of a risk. Generally a loan to value of 85 or less and a mortgage deposit of 15 or more Based on our research the content contained in this article is accurate as of the most recent time of writing. The lender will ask you for much of the same information as it would when applying for Compare Lenders Mortgage Rates a mortgagesuch as access to your credit.
Lease extension and freehold purchase. A flat above a shop or commercial premises has several risks which a lender will consider when deciding whether to lend. 4 Flats above a shop or commercial premise After the financial crisis some lenders stopped offering mortgages on properties that were near any high-risk commercial premises such as shops restaurants and pubs.
The lender will consider the business below the flat as thisll influence whether youre offered a mortgage or not and sometimes the maximum loan-to-value available. Am I eligible for a mortgage on a flat above a shop. Photocopies business cards etc.
David Hollingworth a broker at London and Country Mortgages replies. There are 5 main categories of shop over which a flat can be situated and we have access to specialist lenders who will lend on each of these categories. You can get a mortgage on a flat above a shop or restaurant.
WE DONT HAVE TO MEET YOU We can deal with all our clients by Phone Whatsapp Skype Email and Post. Mortgage Difficulties – Flat Above Shops If your flat is located above shops or other commercial premises you may have difficulty finding a mortgage. Any lender looking to lend on a flat above a shop will have a number of questions about the type of business not only on the ground floor of the property you are buying but also those in the immediate vicinity.
Pros for getting a mortgage for flat above a shop If you plan to let the flat above a shop city centre locations can potentially attract high rental income. A1 – general stores such as newsagents and hairdressers A2 financial and professional services such as banks and estate agents. Each lender will follow roughly the same steps when assessing your application.
Source : pinterest.com