Flats above commercial properties set for boom ? commercial mortgages

08 August 2007

New reports suggest that the next major growth area in buy to let will be residential flats above commercial properties, offering lucrative opportunities for investors such as those with buy to let mortgages.

A selection of specialist buy to let mortgages are available for investors interested in this area, designed specifically for residential apartments above commercial premises.

Traditionally, these properties require commercial mortgages and concerns can arise over the nature of the business below the flat. David Whittaker, managing director of Mortgages for Business, highlights these problems.

"A number of factors such as smell, noise and unsocial working hours, [can] affect the future resale potential of the property and the property''s letting potential," he explains.

"To beat tougher rental yields, landlords could look at traditionally higher yielding rental property types and flats over commercial premises falls into this category."

The British Retail Consortium recently reported that the strongest performance in commercial property has been evidenced in the prime pitch market.