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I have found a high st property with great fundamentals and a very healthy rental yield. 


It is in a very impressive listed (grade 2) building with 10 flats.   On the ground floor are two commercial properties - a sainsbury's local and a major bank.  



The flat I am looking at is on the 3rd floor of this building with windows facing onto the high st (double glazing in the bedroom).



Should I be concerned about being above commercial in this situation?  Obviously being right in the centre of town provides good fundamentals - but should I be wary of anything regarding being in the same building as these commercial businesses? 



Any advice would be most appreciated. 





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Yes - Buying properties that are above commercial can be problametic.

You should bear this in mind if you are intending to hold it for a short time? as the buyer too may have issues.


Much of the issues are Location Specific, if you are talking center of London you have more chance than a romote place in the countryside.

In addition it depends on the type of commercial busineses, if they do food or a nightclub then your options are limited.


There are lenders of course that will lend regardless; so your paying higher rates.

:wub: Get Mortgage Advice from my Team at Bespoke Finance on 08009202001 or email hello@bespokefinance.info 
Please don't take my messages on Property Hub as Personal Financial Advice, just a rambling guy passing time on a Coffee Break.

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It is impossible not to limit your options on this property Duncan. A significant number of BTL lenders will decline to lend on flats above commercial. Simply because, as always, they have the end game in mind; if they have to repossess and offload this type of property there will be a reduced number of interested buyers compared to a similar flat in a residential block. Where some buyers see the central position as an advantage, others will see noise and all the activities of a busy high street as undesirable.

Of the reduced number of lenders prepared to offer you a mortgage on this type of property, that reduced choice will be reduced further by the presence of Sainsburys below as it will have at least two  of the nasties that lenders really hate

  1. unsocial opening hours i.e. not the usual 9 to 5
  2. sale of alcohol


Add to that a possibly 3rd nasty of storage of inflammable goods

So can you get a mortgage on this? Yes you can. Will you have a wide choice of lenders? no you wont.

The good yield is typical of this type of property because the restrictions mentioned above will prohibit it commanding the same price as an identical flat in a residential block.

Kevin Wright

Positive Property Finance

Telephone: 01206 586586

Email: inspireme@thinkpositively.co.uk

Brokerage website: www.positivepropertyfinance.co.uk

Workshop website: www.ninjainvestorprogramme.co.uk

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