Location and Mortgage Lenders

Above-shop location should be treated with caution according to a Home Buyers Survey in Surrey

A two-bedroom flat above a dry-cleaning shop on a busy street has met with reservations regarding its location by the Surveyor conducting this Home Buyers Survey in Surrey.

Busy Road

The RICS Chartered Surveyor first elucidated the consequences to the property and its value relating to the street it stands on. It was suggested that the business of the road, in terms of both human and motorised traffic, would deter certain purchasers.

The flat is also situated across from a public house. The late night noise and potential trouble when people leave such establishments may devalue any homes in the close vicinity.

Mortgage concerns

The above observations are not exclusively those of experts. Most people understand the repercussions to a property's value of being situated in a busy, commercial district.

But where the Home Buyers Survey in Surrey added a degree of nuanced, expert advice was in the assessment of the likely financial impact of the property's location, compared to, say, an identical property a mere couple of streets away.

In addition, many mortgage lenders, particularly larger institutions, do not consider it a viable proposition to make mortgage lending available to flats above small shops and take-away restaurants.  

Furthermore, the building was constructed partly with an older type of concrete frame, which several institutions are also averse to lending on.

Difficulty re-selling

The reluctance of mortgage lenders to lend on homes above shops will be even more relevant when the residence came to be re-sold.

The Surveyor who conducted the Home Buyers Survey in Surrey highlighted the fact that there is a vacant shop in the terrace close to the subject flat. If this were to be occupied in the future, it may push more lenders away from the proposition. The owner of the flat would simply be left high and dry.

The Surveyor went on to qualify this piece of information as 'essential' towards protecting the client's interest.

Intrusive extraction vent

A separate qualm that was raised involved the positioning of the dry-cleaning shop's extraction vent: its point of release was right buy the flat's bathroom window. An unpleasantness would likely result from the emissions of extracted air and, most probably, fumes.

Location, location, location. . .

A good portion of the issues raised by the Home Buyers Survey in Surrey may seem like common sense to the modern, savvy house-hunter.

However, a layperson may not be expected to anticipate the mortgage lending issues raised in the report. Their discovery just provides another very good reason to obtain a HomeBuyer Report in Surrey.