Commercial with flat above

[shina]

Hi,
I own a property in Liverpool that includes a store at ground floor and 2 floors above which I renovated (didn't renovate the store yet) and I want to remortgage the residential part of the property - the 2 floors. The lenders won't give me residential mortgage as they claim the 2 floors considered to be commercial as a result of the store below.
I have the option to split the store from the 2 floors and to get a buy to let mortgage, a move that will cost me of course or to take a commercial mortgage (that will cost me more) on everything.
What would you do? Do you know/can think about other way to get out if it with a residential mortgage?
Thanks,
S

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[MortgageWhiz]

Splitting the Title should be cheaper. If you meant to say you have to split the actual shop from the uppers , then do your calculations.
However, you might be lucky with a BTL Lender to take a view as an exception, depending on the nature of the shop, the gearing and cash flow of your portfolio, credit rate etc.
Good Luck
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[Longterminvestor]

Great points above. I notice that you have said "didn't renovate the store yet", does this mean that you have plans to renovate the store? Is there any scope in waiting until the whole building has been renovated before you remortgage?

 

[shina]

I want to renovate the store at some point but in a later stage.
Will I need to pay stump duty again if I change it from freehold to lease?
I'm working with a broker who said none of the lenders will barrow money for a freehold flat.
Thanks

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[FWL]

Have you tried NatWest? A number of websites suggest that they will lend money against a freehold property.