Mortgages for Business, the leading specialist Buy to Let mortgage broker, are reporting an increasing interest in Buy to Let flats above commercial premises. Mortgages for Business is currently the only UK broker to offer mortgages for this property type via their exclusive access to Keystone Mortgages.
“We launched the product in early 2007 and going into 2008 we have seen investors buying more and more of this property type.” Says, Jonathan Moore Head of Marketing.
Flats above commercial premises have in the past been viewed as undesirable to tenants. However in an increasing crowded rental market many renters are now exploiting their extremely spacious rooms and central locations.
Keystone Mortgages are one of the few mortgage lenders to fund this property type because many lenders have concerns around tenant attraction and factors such as smell above food outlets. This has lead to the flats of this type coming onto the market at comparably lower prices but with a similar potential rental value.
“Savvy investors are increasingly looking for higher yielding property types such as HMOs (houses in multiple occupancy) and flats above commercial premises as capital appreciation has steadied and rents have been increasing rapidly due to tenant demand. Additionally investors have more complex borrowing requirements such as using limited companies as an investment vehicle” Moore comments.
The Buy to Let market is increasing dominated by experienced portfolio investors and these investors are more comfortable with this property type, whereas newer investors will tend to be more wary.
