I am planning buy a commercial building. It has a ground floor, first floor and a cellar.
I am planning to apply for planning permission to convert the first floor to 2 two bedroom flats. If the planning is approved then only I will buy the property.
I am planning to rent out both flats in the first floor and I am planning to run my own corner shop in the ground floor and in the cellar.
I am not sure how the purchase should happen.
I have a few options -
Option 1: Buy in joint names (me and my wife) using bridging loan and then after the conversion to flats either
(a) put the entire building to a Semi-Commercial Mortgage or
(b) form a limited company and lease the flats to the new limited company and keep the commercial area in our joint names. In the commercial area, I am planning to run myown shop. It will be a new shop and as there is no income history from the corner shop business, I hope I will not be able to put it in a commercial mortgage.
Option 2: Buy the building in a Limited Company (Family Investment Company) and then do the conversion and change to a Semi-Commercial Mortgage.