The common misconception when buying a live/work property is that the mortgages are more expensive. This simply isn’t the case.
Live/work is not a well-known property term and it is unlikely many potential buyers are aware of what it means.
Step into any local high street bank and it soon becomes clear that many of the staff are unfamiliar with the term live/work themselves. Often, clients are directed to the commercial lending arm of the bank, and then back to the residential lending arm with no one really being sure how to help.
Quite simply some banks lend on live/work properties and some don’t. Some have rules on the % split of live/work properties and some don’t.
As the mortgage market changes weekly, it may be possible to find a bank that will lend on a live/work property and although it may be the most competitive lender one week, it might not be the next week.
Essentially the choice of lender is a little more restricted if when buying a live/work property.
Although a premium will not be added to the mortgage, a smaller pool of mortgage lenders are on offer to buyers and therefore a smaller selection of mortgage products.
The two issues live/work property buyers need to be aware of are:
- Choosing a lender that will agree to lend on the property
- Making sure the case is dealt with by an underwriter who is familiar with the term live/work and understands that the bank they work for are happy to lend on them
If a buyer wants to invest in a live/work property with a mortgage it is important the right financial advice is sought to ensure a suitable lender is chosen.
Prudell Ltd are experts in arranging mortgage finance on live/work properties. They have been advising and arranging mortgages for over 30 years.
Please contact us today on 020 7328 3280, email us on firstname.lastname@example.org or complete the form below and will contact you.
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