Hi

I am considering purchasing a flat above a commercial premises. Two of them that I'm looking at are not above food outlets, and there aren't other smelly shops either side.

However, I'm worried that going aead with one of these will be a mistake.

Although I've been assured that the commercial premises are A2 graded (office use only) the freeholder can choose, at any time, to change this, which could mean a Turkish Kebab Shop opening up at a later date.

Also, a few people have told me these are sometimes hard to sell on (even if they are in a good location) and that extending leases can sometime be problematic.

Anyone who has got opinions on this I'd be extremely grateful.

In a word....Don't.

Hard to get a mortgage on. Difficult to sell on.
Problems with shops below you.

When I bought my flat I looked at 42! I didn't even consider looking at one above shops.

Mel is right: don't do it.

When you come to sell on, any purchasers will have exactly the same doubts as you, even if you have not had problems with shop use changing during your time.

You will find your investment will not increase as much as you need to move up the ladder. Of course, if they do open up a takeaway or betting-shop underneath or next door, you could find yourself with an unsaleable property or negative equity.

quote:

Originally posted by liz3:
You will find your investment will not increase as much as you need to move up the ladder.

I find this bizarre - even if it did increase, the next rung would've likely increased even more, making the gap widen!

quote:

Originally posted by MELBOY:
In a word....Don't.

Hard to get a mortgage on. Difficult to sell on.
Problems with shops below you.

What he said. If you have a choice, don't do it.

Ary.

As I am currently the owner of a flat above an off license, I totally disagree with the previous posts. I will state that my flat was purpose built and not a conversion, that may be different. I always have girls queing up to move in, they all love it. I have been approached by someone who offered me a sizeable profit on it, but dont want to sell. There is a chippy around the corner, and next door a fish shop and a hairdressers, none of them have any adverse effect on the occupation of the flat. I really dont know what the big deal is?

quote:

Originally posted by pasadena:
As I am currently the owner of a flat above an off license, I totally disagree with the previous posts. I will state that my flat was purpose built and not a conversion, that may be different. I always have girls queing up to move in, they all love it. I have been approached by someone who offered me a sizeable profit on it, but dont want to sell. There is a chippy around the corner, and next door a fish shop and a hairdressers, none of them have any adverse effect on the occupation of the flat. I really dont know what the big deal is?

I tend to agree. There seems to be a, dare I say it, unjustifiable, fear for buying this kind of property.
A while back I was looking at a flat (maisonette) above a shop to buy. It offered almost twice the space of flats similarly priced. Great transport 'round the corner. Plus it had its own front door and even a small roof terrace with, admittedly, rhe airco 'outlet' of the downstairs shop on it.

There are of course potential problems with these flats : smells, late night noise, attraction of perhaps 'undesirable' folk etc.

There is a slight catch22 situation: because of the perception of difficulty to sell, there is reluctance from lenders to provide mortgages on them, which then does make them hard to sell.

But all in all I think a flat above a shop could give you real value for money when chosen carefully.

With the aparent shortage of (affordable) housing, particularly in the big cities, living above commercial premises might be one of the ways forward.

quote:

Originally posted by pasadena:
As I am currently the owner of a flat above an off license, I totally disagree with the previous posts. I will state that my flat was purpose built and not a conversion, that may be different. I always have girls queing up to move in, they all love it. I have been approached by someone who offered me a sizeable profit on it, but dont want to sell. There is a chippy around the corner, and next door a fish shop and a hairdressers, none of them have any adverse effect on the occupation of the flat. I really dont know what the big deal is?

No it's not a big deal but the person is looking for people's views on it.

I know someone who bought a flat above a Hardware shop some 10 years ago as an investment and like you had no problems letting it out. Shop opened at 9am and closed at 6pm no problems there then.......until the owner retired and a wholesale Butcher took over suppling meat to local Indian and Chinese restaurants. 4am starts and late finishes with the constant coming and going of vans delivering and collecting.
He can't sell the place above the shop for what it is now and he has Tenants in at a much reduced rental because of the inconvenience of the shop below.
It is for that reason that anyone wanting to purchase above a shop needs to be aware that a change of use could be detrimental to you and needs careful thought before proceeding.
Mel.

Good advice Mel.

I think anyone who own flats above commercial should keen an eye on local planning applications, just in case that computer shop below intends on becoming an amusement arcade!

quote:

Originally posted by pasadena:
I always have girls queing up to move in, they all love it.

I wish I could say the same about my place!