Residential and commercial in one?

Residential and commercial in one?

10:50 AM, 29th January 2014, About 9 years ago 3

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I’m a buy-to-let landlord of one property (should be two in a couple of weeks). My wife came across another potential investment online yesterday. The property is a 3 bed detached house set back from a main road which comes with a commercial property (car repair workshop). The property is priced at £160k, both the house and workshop are tenanted currently at £1000 PCM. It does not specify, but I imagine this to be a near 50/50 split. Residential and commercial in one?

Anybody who read my last readers question may remember that I currently live in Australia and will be moving back in a couple of years. This is a different investment than I usually look for, we came across it accidentally. The reason this interests us is I’m a mechanic by trade and currently work in the industry in Australia. We are happy to keep the tenants in place and would look to live in the property when we return with myself running a small car repair workshop.

My dream is to be financially independant. I believe I can make a lot more money for property investment this way than working for somebody else and paying a normal mortgage.

It is advertised as an investment property, I know as a general rule 25% would be required for a deposit. Assuming I could raise this amount of money for the purchase I have the complication of living overseas for finance purposes which was difficult enough for my first two properties.

Would it be possible for me to finance this even if I lived in the UK?

Does it require a specialist lender?

How would the tenancy of the garage be set up?

Could they be in there for years with me not having the right to get them out within 12 months of deciding we’re moving home?

How is this likely to work with council tax and business rates?

The house itself has a number and the address of the garage is the same number with an “a” added to the end if that makes any difference?

Any and all opinions, advice and things to look out for a greatly appreciated.

Many thanks


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Mark Alexander - Founder of Property118

10:57 AM, 29th January 2014, About 9 years ago

Hi Nathan

Financing semi commercial property on an investment basis for a UK ex-pat living in Australia and intending to move into the property at a future date sounds like a bit of a long shot to me. I will be very impressed if any of our mortgage broker members manage to crack this one!

Nathan 1986

11:30 AM, 29th January 2014, About 9 years ago

Hi Mark,

Thank you for the comment. A long shot indeed I agree, having said that I do believe this is the best place to ask the question and at the end of the day, don't ask don't get! One thing I would be able to do is to return home for a period of time so I am living in the UK as such. I could probably find work fairly easily too but it would all be for the sake of buying this property. I wonder if this would open any doors up with a residential with permission to let type mortgages.

Exactly how I finance this may also be a slight issue. It may be difficult to find 25%. However if it was residential with permission to let maybe the deposit could be reduced also. I think this would take one guru of a mortgage advisor, that's I it's even possible.

Thanks again


Howard Reuben Cert CII (MP) CeRER

12:39 PM, 31st January 2014, About 9 years ago

Not sure if I can crack this one, and of course I can't answer the legal or tax questions posed but on the financial advice side .... I have spoken to a few of my commercial lending contacts and they all need a bit more info first, as follows;

is the property one title with the LR or is it split title (ie 2x leaseholds on one freehold, for example)?

what is the actual breakdown of rental income?

or is it currently the same tenant in both paying just one combined rent?

what is the land area split? i.e. is it 60% residential and 40% commercial?

where in the UK is this property?

are there any shared access queries registered at the Land Registry for this title?

There will probably be a lot more questions too, but this is the basis of whether they would consider this any further.


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