Flats above shops. Mortgages
for difficult properties in the UK
Flats
above shops and other commercial premises are also
more difficult to get mortgages on.
As
well as looking at construction and marketability, lenders will
look at whether any of the commercial activities in the block
are likely to cause a nuisance by virtue of noise, smell or
unsociable hours.
They will also look at whether access to the flat
involves passing through the business area, through yards containing
commercial refuse or using poorly maintained external stairs
– all these things can affect the flat’s resale value.
When the market turns sour, flats above shops are less desirable
than they may seem now, so will be the slowest to sell. Lenders
obviously worry about this and many mortgage lenders
refuse to lend on flats above shops.
There are three categories
of shop assessed by lenders.
These
categoroes are used by council planning departments to designate
the agreed usage of a property
Category
A1 covers general stores like newsagents and food shops;
Category
A2 are professional services like banks and estate
agents;
Category
A3 are the really difficult ones for mortgage companies
and include restaurants, takeaways and pubs.
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