Flat above a takeaway?

[DatingDickheads]

I’m trying to buy a flat above a takeaway but I can’t find a mortgage provider willing to lend on it. If you live in a flat above a takeaway/cafe etc who is your mortgage provider?

The only one I ever found was Northern Rock.... In the end I abandoned the idea and bought elsewhere.

Thanks @SoddingWeddings I will look up northern rock. Although I may eventually have to abandon the idea too... it’s my dream flat though!

Umm, Northern Rock went bust years ago, partly due to unwise lending decisions such as 125% mortgages and lending on unsuitable properties, like those above takeaways.

To get a mortgage on a flat above a takeaway, you'll need a massive deposit or might even need to be a cash buyer. You probably also want to look at the insurance aspect, as I would have thought this would also be problematic due to the risk of fires.

What sort of takeaway is it? Might depend on whether it's a nice bakery/sandwich shop that's only open in the morning and lunchtime, rather than a late night takeaway that looks like it sells late night chicken and chips, but is actually a front for drug running and money laundering.

The flat may be your dream flat, but problems with mortgages and hence resale value are well known.

www.thisismoney.co.uk/money/experts/article-4171842/Why-lenders-refuse-mortgage-flat-shop.html

www.theguardian.com/money/2021/feb/17/takeaway-below-our-flat-has-left-us-in-crippling-debt

www.propertytribes.com/valuation-came-back-zero-as-near-take-away-t-8816.html

My flat is on a block with 2 takeaways and a garage. Not directly above, but next door to one. I've mortgaged with Halifax and then NatWest. It has never been a problem.

Thanks @BarbaraofSeville it’s a snack shop that is mostly busy during school break times. Only open until 4pm. It’s been there for 15 years.

I guess I need to start being realistic. The excitement of buying my own place after divorce coupled with the fact that the flat is in exactly the right location and my kids love it may be clouding my judgement.

The only other properties that I can find in my price range that I like are all above commercial properties

Why is it difficult to get a mortgage on a flat above a takeaway? I’ve never bought so I can’t work it out

@OneRingToRuleThemAll NatWest refused me. This flat is directly above the takeaway so that may be the reason.

@neutraliseacid I think it’s the risk factor for the lender if they have to sell it. Noise, smell etc can make them difficult to sell. Plus fire risk.

Plus continual rodent infestations (IMO) was London though, don't know the rest of the country.

Sometime they just come to die in the floorboards also, it stinks.

I'm wondering if this is a 'chicken and egg' situation. As in, the reason that it might be hard to sell is because people can't get mortgages, not because people don't want to live above a cafe etc.

Although in your case, OP, one concern might be that the daytime snack shop closes down, and is replaced by a late night takeaway, with the associated noise, smells and delivery drivers coming and going, but I don't know if these are in different planning categories, so can't automatically change from one to the other?

It might be your dream property at the moment but most likely won't always be and when you do decide to sell you are stuck with a absolute nightmare

Save yourself the stress and walk away. There are plenty of other lovely flats out there without the baggage a takeaway brings

@BillieSpain that’s a good point.

@BarbaraofSeville that’s an interesting way to look at it.

It’s closed at the moment and could possibly go up for sale with the current situation. Then who knows what it could be.

Try Foundation, you have to go through a broker. They are not so bothered about things like that.

The problem would also be if you wanted to re-sell, wouldn't it? Prospective purchasers would be in the same situation, especially if there was a change of use to something less amenable, and if you wanted to move quickly you might not be able to.

I lived above a Chinese takeaway - the buzzy whirring from the fans was unbearable. The floor vibrated every night.

Avoid it like the plague !! I worked with a guy who rented above a kebab house.......the smell on his clothing was rank. He was very clean himself but just had this lingering odour of kebabs

I worked in mortgages years ago and they wouldn't lend for properties over shops.

They were one of the ones with mortgages over 100% that went bust as well.

Northern Rick was the first bank to go just in the financial crisis of 2008! Don't do it!