Show home - commercial to residential
Discussion
My parents are trying to buy a new house on an estate. The house has been used as the show home for the development, and as such was classified as a commercial property. They are now at the point of having a buyer who wants to move in in the next couple of weeks and a seller who has not managed to clarify/resolve the change of use.
Matters are slightly complicated in that the show home is owned by a private individual, but was rented back by the developer for use as the show home so the developer (presumably) is not particularly interested/able to get it sorted.
So, question for the experts on here: what would be the consequences of completing the sale and moving in ahead of the property being re-classified as residential? Is there any way to get the change of use expedited quickly?
Obviously, my folks don't want to lose their sale and are keen to get moved, but this is proving a head ache and I was wondering if anyone has any ideas. Obviously solicitors are engaged in trying to resolve, but wondered if there is likely to be anything that can speed things along.
Thanks!
Matters are slightly complicated in that the show home is owned by a private individual, but was rented back by the developer for use as the show home so the developer (presumably) is not particularly interested/able to get it sorted.
So, question for the experts on here: what would be the consequences of completing the sale and moving in ahead of the property being re-classified as residential? Is there any way to get the change of use expedited quickly?
Obviously, my folks don't want to lose their sale and are keen to get moved, but this is proving a head ache and I was wondering if anyone has any ideas. Obviously solicitors are engaged in trying to resolve, but wondered if there is likely to be anything that can speed things along.
Thanks!
I'm no expert (other than i had to get change of use on a commercial building) but this is exactly what your solicitor should be advising on, I'd be amazed if you could get a mortgage on a commercial property, I would really want this changing before I exchanged. Unless they are not using a solicitor and paying cash then let the proper legal people deal with. I'm guessing they really like the place and want to get in ASAP ?
I didn’t really read the proof that carefully, it looks like you are doing everything you can with the solicitor, I don’t think anything you can do (or should) will hurry this on. I discovered on my new build that it hadent been registered with the street naming people and as such didn’t exist even though i was paying council tax ! Try getting any services connected when your not on the post office database
Feels like it should be a formality. It is a house that was built as a house, has been furnished as a house bar the living room which had some desks in, and is surrounded by other houses which are all the same (including it's semi-attached neighbour!). I don't think that there can be any issues with the change of status, I just wondered how long it would take and if anything could be done to expedite it.
Solicitors are on the case, of course, but I guess it is down to the seller's solicitor to actually resolve things, and that makes it harder to know if things are progressing as they should!
No mortgage so that complication is removed.
Solicitors are on the case, of course, but I guess it is down to the seller's solicitor to actually resolve things, and that makes it harder to know if things are progressing as they should!
No mortgage so that complication is removed.
New build developments usually have show homes and their use classification is not commercial for the simple reason that they're not.
This will be a showhome leaseback, probably by a buy-to-let landlord. They buy the property and lease it back to the developer for as long as they need it as a showhome. It then reverts to the owner who lets it out or moves in. It's a popular move with developers as they get a quick lump of cash. The issues are more likely to be with the mortgage on the property (assuming there is one) as most lenders won't fund these deals with traditional buy to let mortgages, so there might be a commercial mortgage on the property.
This will be a showhome leaseback, probably by a buy-to-let landlord. They buy the property and lease it back to the developer for as long as they need it as a showhome. It then reverts to the owner who lets it out or moves in. It's a popular move with developers as they get a quick lump of cash. The issues are more likely to be with the mortgage on the property (assuming there is one) as most lenders won't fund these deals with traditional buy to let mortgages, so there might be a commercial mortgage on the property.
ElectricPics said:
New build developments usually have show homes and their use classification is not commercial for the simple reason that they're not.
This will be a showhome leaseback, probably by a buy-to-let landlord. They buy the property and lease it back to the developer for as long as they need it as a showhome. It then reverts to the owner who lets it out or moves in. It's a popular move with developers as they get a quick lump of cash. The issues are more likely to be with the mortgage on the property (assuming there is one) as most lenders won't fund these deals with traditional buy to let mortgages, so there might be a commercial mortgage on the property.
And if OP's parents are using a mortgage or finance they aren't likely to get it on a property that doesn't have pp.This will be a showhome leaseback, probably by a buy-to-let landlord. They buy the property and lease it back to the developer for as long as they need it as a showhome. It then reverts to the owner who lets it out or moves in. It's a popular move with developers as they get a quick lump of cash. The issues are more likely to be with the mortgage on the property (assuming there is one) as most lenders won't fund these deals with traditional buy to let mortgages, so there might be a commercial mortgage on the property.
jmcc500 said:
Just to reiterate, there is no mortgage on this, the issue was (rightly) raised by my parent's solicitor.
Apparently, it is currently classed as commercial, presumably because it has been used as a showhome and sales office.
Id go with what ElectricPics has said....i have worked for a house builder (in scotland) for approx 6 years and not 1 of our showhomes was a commercial property.Apparently, it is currently classed as commercial, presumably because it has been used as a showhome and sales office.
ElectricPics said:
New build developments usually have show homes and their use classification is not commercial for the simple reason that they're not.
This will be a showhome leaseback, probably by a buy-to-let landlord. They buy the property and lease it back to the developer for as long as they need it as a showhome. It then reverts to the owner who lets it out or moves in. It's a popular move with developers as they get a quick lump of cash. The issues are more likely to be with the mortgage on the property (assuming there is one) as most lenders won't fund these deals with traditional buy to let mortgages, so there might be a commercial mortgage on the property.
100% thisThis will be a showhome leaseback, probably by a buy-to-let landlord. They buy the property and lease it back to the developer for as long as they need it as a showhome. It then reverts to the owner who lets it out or moves in. It's a popular move with developers as they get a quick lump of cash. The issues are more likely to be with the mortgage on the property (assuming there is one) as most lenders won't fund these deals with traditional buy to let mortgages, so there might be a commercial mortgage on the property.
I think wires are crossed about whether the property is commercial or not, based upon it having a commercial mortgage.
I wonder what the rates are , that should tell you if it’s comercial or domestic , if it is comercial (which seems unlikely but you never know) then technically no one should be living in it , this information should be in the public domain get into your local authorities website and have a dig ! My little experience of buying left me to believe solicitors can get a bit arsey with each other and be pretty unhelpful , I found all of my problems went away when I directly contacted the seller to get their solicitors side of the story . Can your folks talk to the seller and see what he says ?
It was just a formality for us. We moved into the (closed previously) village Post Office with the intention of refurbishing it and turning it back to a house. A phone call to the local planning department indicated that it would not be a problem, which proved to be the case.
The premises were changed (for a small fee) from 50% Commercial/50% Domestic to 100% Domestic with just a nod of approval through the next planning meeting.
I wouldn't be concerned in their position.
The premises were changed (for a small fee) from 50% Commercial/50% Domestic to 100% Domestic with just a nod of approval through the next planning meeting.
I wouldn't be concerned in their position.
littleredrooster said:
It was just a formality for us. We moved into the (closed previously) village Post Office with the intention of refurbishing it and turning it back to a house. A phone call to the local planning department indicated that it would not be a problem, which proved to be the case.
The premises were changed (for a small fee) from 50% Commercial/50% Domestic to 100% Domestic with just a nod of approval through the next planning meeting.
I wouldn't be concerned in their position.
A nod? Of course. After a change of use application that is, because local authority planning offices don't consider anything else but if there had been objections that could have ended up in front of the full planning committee. Not that it makes the slightest difference in this case because you were applying for change of use. The OP is being mislead by someone, for whatever reason. A Land Registry search will quickly reveal any mortgage or other charges on the property - it could be a simple secured loan - and a call to the planning department of the relevant local authority will probably end up in them asking what he's on about.The premises were changed (for a small fee) from 50% Commercial/50% Domestic to 100% Domestic with just a nod of approval through the next planning meeting.
I wouldn't be concerned in their position.
Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff