Selling a flat above a commercial property can be tricky, but it’s far from impossible.
At Property Saviour, we’ve helped many owners successfully sell their flats above shops, restaurants, and other businesses. Here’s what you need to know to make your sale a success.
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How to Sell a Flat above a Commercial Property?
There is an abundant supply of flats above shops or offices near the city centres or in busy shopping parades. You may own a flat above a takeaway, a charity shop, a cloth shop, a bank, or newsagents. The list of possibilities is endless. These can be very attractive properties for homeowners who want the convenience of all amenities nearby.
Flats above commercial premises are called mixed-use commercial properties, and they are treated differently from your normal purpose-built block of flats.
Before you try to sell your flat, you will need to apply for permission from the freeholder.
Freeholders own the property, whereas a leaseholder will have a right to occupy the property under the terms of your lease for 85 to 125 years. Unless you also own the shop below, it is likely that you are a leaseholder.
Understanding Your Property
Your flat is part of a mixed-use property, combining residential and commercial elements. This unique status affects its marketability and the pool of potential buyers.
Title Deeds: Check if your flat shares a title deed with the commercial unit below. Separate deeds can make selling easier.
Lease Terms: Review the lease for both your flat and the commercial unit. Look for:
- Permitted uses of the commercial space
- Trading hours
- Noise and nuisance clauses
Access: Does your flat have its own entrance? Separate access can be a selling point.
Preparing for Sale
Before listing your flat, take these steps:
- Get a professional valuation
- Make any necessary repairs or improvements
- Gather all relevant documents (lease, service charge records, etc.)
- Consider having a survey done to pre-empt buyer concerns
Finding Buyers
Your flat may appeal to:
- Investors looking for buy-to-let opportunities
- First-time buyers seeking affordable properties
- People who value proximity to amenities
Highlight the benefits of your flat’s location, such as easy access to shops and transport links.
Mortgage Challenges
Many buyers will need a mortgage, which can be trickier for flats above commercial properties. Some lenders are hesitant due to:
- Potential resale difficulties
- Noise or odour issues
- Fire risks from certain businesses
Buyers may need a specialist mortgage and a larger deposit (often 25-40%).
Marketing Your Flat
When advertising your flat:
- Be upfront about its location above a commercial property
- Emphasise any positive aspects of the commercial unit (e.g., a quiet office rather than a noisy pub)
- Showcase any period features or recent renovations
- Highlight the convenience of the location
Legal Considerations
Selling a flat above a commercial property involves some unique legal aspects:
- Ensure the lease allows residential use
- Check for any restrictions on selling
- Be prepared to answer questions about the commercial unit’s impact on the flat
Tips for a Successful Sale
- Price realistically, considering the property’s unique nature
- Be patient – it may take longer to find the right buyer
- Consider offering incentives, like covering legal fees
- Be flexible with viewings to accommodate potential buyers
If you need a quick sale, we can make you a cash offer and complete the purchase within a couple of weeks.
Can I sell my flat if I don’t own the freehold?
Yes, you can sell a leasehold flat. However, you’ll need to provide details of the lease to potential buyer
With a missing freeholder, there will be nobody to take care of the management issues such as the car park turning into a fly-tipping zone, overflowing rubbish, pest infestation, no insurance, regular health and safety risk assessments, lack of compliance checks and the building falling to into disrepair because of neglect.
If your flat has a missing freeholder, it becomes much harder to obtain consent to let, consent to sell or deal with day-to-day issues. For example, if you have issues with a shop below, your freeholder (landlord) should be able to mediate and find a solution.
This is something we can assist you with if you are considering selling.
Will the type of business below affect the sale?
Yes, the nature of the commercial unit can impact buyer interest and mortgage availability. Flats above quiet offices or shops are typically easier to sell than those above noisy bars or smelly takeaways.
It is worth checking the lease of the shop to understand:
- What type of shop can be run? You don’t want smells, noises, or a crowd ‘hanging around’ that could affect the enjoyment of your flat.
- Hours of use – Ideally, you want to see daytime hours for trading.
- Look at the lease terms and whether it prevents shop owners from noise or nuisance.
- Remember, as mentioned previously, that if a shop closes/is sold or re-let, it can change everything depending on new trading activity.
The Property Saviour Advantage
Selling a flat above a commercial property can be complex, but you don’t have to go it alone. At Property Saviour, we specialise in buying challenging properties quickly and for cash. We can often complete purchases within 2-3 weeks, with no mortgage-related delays.
If you’re looking for a hassle-free sale, why not get in touch? We’ll make you a fair cash offer and can even cover your legal fees up to £1,500.
Sell with certainty & speed
Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.
We'll Pay £1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.
Sell With Certainty & Speed
- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.
