In your search for a new home, one option you can always take into consideration is a flat situated above a shop. You may ask yourself, is this a good place to live?

The answer is sometimes. If this does appeal to you, there are a few issues to address first. But always ensure that you consult a property solicitor.

The nature of the business below the flat, and even those surrounding it, is an important factor as it determines just how good an accommodation this will prove to be, as well as affecting a lender’s decision to invest in your mortgage.

For example, a take-away shop is open at unsociable hours, will inevitably have drunk, unruly customers populating it, and will cause your flat to smell of the day’s special.

If you think you can live with that, then great! However it will not have the degree of marketability that lenders require to confidently grant loans and if it doesn’t look like a place that will resell easily, they will probably pass on it. If not, there will most likely be a larger down payment than usual. Your conveyancing solicitor will be able to advise you on this.

Types of business can also affect the building insurance, such as pubs and restaurants which have higher fire and security risks. This will in turn effect what you need to pay as well.

However living above a shop does have its advantages as you will definitely be closer to local amenities and lenders to favour certain buyers over others. Once you own the flat, it can prove to be a good rental opportunity if you decide not to live there in future as there will always be students and young professionals looking for a place and they are likely to be a lot less fussy about the social aspects.

Take advantage of online conveyancing to keep an eye on the housing market.

Tags: buying a flat, buying a home, buying a property