What kind of mortgage do I need?

[Househunter]

Hi. I am wanting to buy an unlicenced pub. Can anyone advise what kind of mortgage is required? I plan to use is as residential home, no intention to run as business. I would like to make some minor changes but it is not a 'development' project.
After thorough research, the local planners have said change of use will be granted subject to submission of application and plans.
My problem is where to start with a mortgage application. The property is structurely sound and habitable but a failing business hence the brewery are selling up.
I'm not sure how to move this on. One broker has mentioned development loans and commercial mortgage plus bridging loan which sounds hugely complicated and expensive.
Any ideas would be gratefully recieved as very keen to get this moving
Thank you!
ps I am not a first time buyer and have a decent deposit

[brian]

Hm...I'm surprised - if this is supposed to be for a residential project, then what is stopping you being able to get a normal residential mortgage?

Commercial mortgages are very tight these days - there are no deals above 25% deposit and 30% is the more common. Terms tend to be far less flexible than residential mortgages as well.

[ckf]

Originally Posted by Househunter

Hi. I am wanting to buy an unlicenced pub. Can anyone advise what kind of mortgage is required? I plan to use is as residential home, no intention to run as business. I would like to make some minor changes but it is not a 'development' project.
After thorough research, the local planners have said change of use will be granted subject to submission of application and plans.
My problem is where to start with a mortgage application. The property is structurely sound and habitable but a failing business hence the brewery are selling up.
I'm not sure how to move this on. One broker has mentioned development loans and commercial mortgage plus bridging loan which sounds hugely complicated and expensive.
Any ideas would be gratefully recieved as very keen to get this moving
Thank you!
ps I am not a first time buyer and have a decent deposit

Hi Househunter

For mortgage purposes you will require the proper planning consent. I suggest you secure that first.

From experience, when time is crucial, and you have to acquire the property urgently prior to planning approval, I suggest you consider the use of specialist acquisition finance such as Bridge loan or Light refurb mortgage with the end goal being a refinance to a mainstream mortgage lender. The process may seem complicated but I assure you it isn't and I speak from experience of managing such process.

Keep me updated on your thoughts and your current situation


Regards

CKF