Leasehold from Freehold

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    Leasehold from Freehold

    I am planning to buy a residential property and convert the ground floor into a cafe.
    I will have a mortgage of circa £190k on the property (purchase price £240k) and about 30k of this will be used to convert.

    My mortgage lender will not lend for commercial properties, only residential.

    After the planned conversion, I may be able to secure the whole mortgage over the masionette only, therefore negating the need for a commercial mortagage (which i presume are more expensive?)

    Can someone please explain how I will divide the property up legally i.e. 2 leasehold with management company owning the freehold?? and how i can secure borrowings over the 2 properties if at all?

    Also, at what point will the property be deemed commercial. During conversion, after conversion? Will i be breaching mortgage terms by converting?
    Thanks for your help

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