Landlords turning to flats above shops
Thu 9th Aug, 10:17:41 BST
Properties above commercial premises are set to be the next big thing in the buy-to-let market, experts have predicted.
Previously, such properties had been unpopular with investors due to the potential difficulties involved in selling them on as well as with financing a purchase, according to Mortgages for Business.
David Whittaker, a spokesman for the firm, said: "If the property is above a food related premises, such as a take-away or restaurant, most lenders steer clear, making these flats a 'no-go' area for all but the most persistent investor.
"This is due to a number of factors such as smell, noise and unsocial working hours, all of which affect the future resale potential of the property and the property's letting potential."
However, the firm stated that the launch of new mortgages deals on the UK market has made it much easier for buy-to-let investors purchase such a property.
The comments come as new research revealed that UK landlords remain confident in the potential of the buy-to-let market.
In a study undertaken by Standard Life, 48 per cent of those questioned said that they felt the sector will see continued growth in the future.
Previously, such properties had been unpopular with investors due to the potential difficulties involved in selling them on as well as with financing a purchase, according to Mortgages for Business.
David Whittaker, a spokesman for the firm, said: "If the property is above a food related premises, such as a take-away or restaurant, most lenders steer clear, making these flats a 'no-go' area for all but the most persistent investor.
"This is due to a number of factors such as smell, noise and unsocial working hours, all of which affect the future resale potential of the property and the property's letting potential."
However, the firm stated that the launch of new mortgages deals on the UK market has made it much easier for buy-to-let investors purchase such a property.
The comments come as new research revealed that UK landlords remain confident in the potential of the buy-to-let market.
In a study undertaken by Standard Life, 48 per cent of those questioned said that they felt the sector will see continued growth in the future.
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