part of our property zoned commercial, how to change? (Spartanburg: lease, mortgage)

[katlynra]

We have lived on the same property for 4 yrs in a lease option agreement. We are ready to buy but have now found out that the 40' x 120' building on the property we use as a garage (we have built a rec room for our teens in the loft) is considered commercial and so we can not just get a residential home loan. Since we do not run a business out of the garage/ building but have used it to house our boat, work on our own personal projects, store our stuff etc, can we somehow change this to a totally residential property (we live in the house on the same property of 7 acres and we are in a residential area, a small farm across the street but also houses up and down the block itself)? The building originally was an open peach shed and someone prior to us enclosed it and had a business there but we rented as a residence. It's either change it or move as now is the time for us to buy. Any suggestions? Who to contact and will it cost a fortune?

[ruvidu]

#1 - Where are you located? If you are in the city limits it will be a city zoning change, outside the city it will be a county zoning change. I have had experiance with both. Let me know. If you were my client I would advise you to let the owners take care of the zoning problem before purchasing but that is another story.
Best guess is it will take at least 3 months.
r

[katlynra]

out of the city limits. Owner has never given a dime toward the upkeep of this property and she won't start now. We've actually had to rebuild an outer wall (band board) and flooring just to keep the house standing. We did have an appraiser come in and that's how we found out about the commercial building label. Her price is within reason according to the appraiser we hired but he couldn;t even give us the usual written appraisal, filing it etc because of this distinction. This would be spartanburg county. You say 'my client'...exposing my naivete, I will ask, is this issue something we can hire someone for?

[ruvidu]

You could but there is not need. Use the contact info below. They will need your Taxmap # when you call. Explain the situation and they can tell you the procedure. It is usually a matter of filing a request and then taking it through a public hearing and two council meetings. Going from commercial to residential is usually a easy task unless there are underlying problems.
Good Luck.
r
Planning and Development Department
Location:
[SIZE=2]Administration Building
Main Level, Suite 700
366 North Church St.
Spartanburg, SC 29303[/SIZE]
Hours:
[SIZE=2]8:30 - 5:00
Monday - Friday[/SIZE]
Department Head:
[SIZE=2]Joan Holliday - Interim Director
(864) 596-3570 (Phone)
(864) 596-3018 (Fax)
jholliday@spartanburgcounty.org [/SIZE]

[katlynra]

thank you. I appreciate your time.

[joeschlabotnik]

Beware! Are you sure the lender says its a problem with the zoning? Or, is the problem because the appraiser is saying it's a commercial structure? Does the current owner have a loan on it? If not, will they finance it for you? Changing the county designation might not get you what you want. Make sure you're not just taking the appraiser's word for it - or, for that matter, one lender's word for it.

[KaraG]

We had a somewhat similar situation. The attorney that we were going to use for the closing worked with the owners and the county to resolve the issue before we could close on the house. It took a few months, but worked out fine.

[katlynra]

The owner has agreed to owner finance which was the suggestion of the appraiser. I am ok with that but only by way of an attorney. I want this totally legal with her carrying the mortgage not some handshake, write it on paper deal. We figured this would work in the interim as it appears that zoning changes will take time then we can pursue conventional financing but now I have come across the term 'best use' and a confirming comment from Joe here that makes me wonder if this zoning change will do it or if there is something more to do? We will go to the bank to see what they suggest but in the meantime does anyone have any input as to whether it is the building designation that could mess this up? Whose mind needs to be changed with regards to the designation of personal garage/shop or commercial building. Is 'best use' indeed just a term for the best way for the county or government to get the most tax money?