Commercial to Residential Change of Use
I am currently looking at a commercial property which is basically two three storey terraced residential type properties converted into offices by opening the adjoining walls to gain through access so the two adjoined buildings work as one use.
I propose to buy the building commercial building (2 x terrace three stories combined) and move my existing business into one side, then apply for change of use for adjoining property to convert in three 2 bed apartments (one on each floor), then in time convert the other side as well.
All the adjoining properties have been changed in to flats so I cant see an issue with change of use.
My main question is; as I’m buying it through my Ltd company for business, and then would have to convert to my residential ownership with my other rentals, how would this work? Would I have to sell it back to myself at a fair market rate or can I keep it under my Ltd trading company?
Also how much deposit will I need for a commercial mortgage I am accounting for at least 20-25%.
Thanks
Martin
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Member Since January 2011 - Comments: 12217 - Articles: 1412
9:21 PM, 23rd February 2015, About 11 years ago
Hi Martin
You are going to need to talk to a very experienced commercial finance broker who is also regulated to advise you on mortgages for domestic use – see >>> https://www.property118.com/member/?id=3042
You are also going to need a take advice from an accountant who specialises in this type of work – see >>> https://www.property118.com/member/?id=452
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Member Since July 2013 - Comments: 1266 - Articles: 1
10:00 PM, 2nd March 2015, About 11 years ago
You can apply for planning while the transaction is going through or before and then get a residential mortgage on the one you want as flats.
Member Since July 2014 - Comments: 21
2:44 PM, 3rd March 2015, About 11 years ago
Reply to the comment left by “Puzzler ” at “02/03/2015 – 22:00“:
I have been informed that the properties are freehold and have separate deeds for each property side, also the vendor is getting planning permission for 6 two beds flats to make it a more attractive proposition, a notice has been placed by the council till 15th March can’t see any issues.
Does this mean if planning is approved I can get a residential type mortgage or as it three times flats on each side it will be still commercial.
Member Since July 2013 - Comments: 1266 - Articles: 1
9:00 PM, 5th April 2015, About 11 years ago
Reply to the comment left by “Martin Gardner” at “03/03/2015 – 14:44“:
I believe you would have to mortgage each separately on B2L. If you want one mortgage on the lot then commercial. The former will be easier I think.