Living "in a shop"

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Caporegime
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24 Oct 2012
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Yer nan's knickers
Odd question this.

Today I was offered a lovely brand new flat two doors down from our current address. The rent is slightly more than half of what we pay now, which suits us perfectly fine as we're saving for a mortgage. It's built in the back area of a retail unit.

Thing is, the owner said the property falls under the shop, he doesn't seem willing to change it so the property wouldn't be recognized as a residential place on its own.

What's the deal with this? Is this legal? I know he's had planning permission and whatnot so the council is definitely aware but if I were to take him up on the offer, where do I stand?

And when it comes to things like bank accounts, visas, insurance, how would that work?

To be honest the deal is great and I know the guy well so I know he's not messing me about, but the address thing is a rather large concern.


Any advice?
 
Just do it. Not legal as it's not registers as living space. But who cares, save for your mortgage. It's not like anything will actually happen, and if it does you'll just get evicted and have to fund somewhere else to live, by which time you will already have saved a large amount. There's a reason it's half price.

Is he using the shop? And paying business rates, and happy for you to use his bins etc?
As there won't be any council tax either.
 
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the problem would be insurance - you would either not be able to get any or it would be invalid if you need to make a claim and the insurance co. found out it was a business address.
 
Another "just do it" here. Yes, it might not be legit but enjoy the cheep rent and the unusual situation, if it all goes wrong move on.
 
Yes, he uses the shop and things like bins wouldn't be an issue at all. The council tax would be included in the price, which I'm fine with, permitting the legality, or more importantly, the repercussions on myself should anything happen. The repercussions he faces would be his problem, I'd make sure he's aware of this before proceeding with anything anyway.

Insurance isn't too much of an issue either, most of our stuff would either be sold or go into storage, and I'd ensure that the place is properly certified electrically with smoke alarms and all the usual risk reducers.

My issue is how would it affect things like income tax band (does HMRC even get involved with things like this?) and of course car insurance and whatnot.

And of course my wife being a saffer, needs visas to go anywhere so it'll turn up on visa application forms too.

I'm also intrigued to know why he wouldn't simply declare it and go above board. I'd even be willing to pay a bit more every month to have it fully legit and sorted, but I'd need to know the process for him, his fees involved and how to do it.
 
Perhaps he's tried and it's got conditions like only lived in as part of the business or something, if that was the case better for you as it would be essentially legal and insurance and anything else wouldn't be an issue.

Car Insurance won't be an issue. You can insure anywhere you want. It's more about where the car is left. You even have fields on insurance forms of it's left away from where you live.

Visas I have no idea about.

How important is the address for you. Could always have everything at your parents/friends address as your official abode.
 
Just do it, it's only short term and as you say lets you save up for a mortgage deposit, who cares if it's not legal, look after number one in this life:)
 
I would double check your liability in a situation like this from what I vaguely remember its not so simple as the landlord being liable. (While its highly unlikely anything would happen you could potentially be properly screwed if it did).
 
Ok, thanks for the feedback so far. I'll see how this thread pans out and also ask around elsewhere as I really don't want to be caught out with this.


I'm also curious about bank accounts, how would that work? Surely a bank would see my account as registered to a business address and charge me different fees? Also, as I'm sure you guys will know, applying for things like loans, mortgages, pretty much anything financial, I have to give my last 3 or 5 years of addresses. I'd probably stay in this place for a year or two to save up a bit but would that affect any finances in future given the address?


As for social stuff, I'm not bothered at all, my family couldn't care less what my address is and my mates wouldn't even know what my address is, other than "dave's place".
 
One of my personal accounts is registered to a business address I don't think it matters too much.

Just a quick note unless I'm wrong there won't be any council tax as its not a residential address. Unless you're contributing to his business rates.

Only thing I could think of that would be an issue is contents insurance.

No idea about liability.
 
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Whilst being able to save on a deposit for a mortgage is good, it may be tricky to get one once it comes to applying what with credit checks etc.

Optimally you want to have been at a proper residential address for a decent amount of time previously and to be on the electoral role etc.

You may be fine, but it could be a concern when the time comes.
 
just register yourself at your parents or whatever for bank accounts etc? I do this anyway as i hate the hassle of having to move them, so until i own a place i'll leave stuff registered there.
 
Jono8 said:
Whilst being able to save on a deposit for a mortgage is good, it may be tricky to get one once it comes to applying what with credit checks etc.

Optimally you want to have been at a proper residential address for a decent amount of time previously and to be on the electoral role etc.

You may be fine, but it could be a concern when the time comes.
Click to expand...


This is the biggest concern, and not one I'm taking lightly. There's not much point saving for a mortgage if the banks then think I'm being shady. I'm also not willing to remove myself from the electoral roll either. I've spent years buttering up my credit record, no chance I'm going to risk that.

rG-tom said:
just register yourself at your parents or whatever for bank accounts etc? I do this anyway as i hate the hassle of having to move them, so until i own a place i'll leave stuff registered there.
Click to expand...

Sadly my parents live abroad and I don't know anyone else I could register at.


I suppose the next course of action would be to see what's involved with getting this done legit.
 
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Cheers Mynight, that's actually a very useful link.

I'm a bit hazy on the exact circumstances though as that link clearly states "plus up to two flats above" and the flat is actually behind the shop, not above it.

The earliest I could move is June so that gives me a bit of time to ask around, it might be worth getting in touch with a few banks and asking them about it re. the mortgage application, maybe the CAB as well. I'm not in any rush to move out and I don't need this at all, it'd just be a nice step to help us increase the rate at which we save for a while, so I can take my time and suss it all out properly.

Another thing I need to consider is that the flat I live in is lovely, everyone who's come over has complimented us on it and our landlord really likes us so the rent's been frozen for the last three years. We're on a fantastic deal as it is, the last thing I want to do is move out and lose this only for the new place to go wrong.

Really got my homework cut out with this one haven't I? Could never just make things simple :D

Thanks for the replies all, much appreciated. I'll continue digging as this is very lucrative but if anyone has anything to add, please do :)
 
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