Selling your flat above commercial premises

How are properties above commercial premises defined?

These will typically be flats that are located in the city centre or other busy shopping areas, and will be above a commercial premise. For example, you might recently have seen flats to let above fast food restaurants, clothes shops, and other businesses. These can be very attractive properties for some prospective homeowners who want to live in such a flat.

Before trying to sell such a home it’s crucial that you know whether you are the freeholder or the leaseholder of the property. Freehold refers to owning the property outright, whereas leasehold refers to having the right to live in the home under the terms of a lease agreement that typically runs from 99 to 125 years. Most flats above shops will be classified as leasehold rather than freehold properties.

Benefits with selling a home above commercial premises

There are several benefits of being the owner of a flat above a shop, particularly if it’s on a busy street in a city where there is very high demand for residences and not much supply of homes on the market. If this is the case then you are in an enviable position when selling, and should think carefully about how much to ask when setting your initial sale asking price.

You can get a good rough estimate value of your flat’s worth by using a property website like Zoopla. Simply enter your address and you’ll be able to find out how much similar flats on your street or nearby sold for in recent months, which should help guide you in deciding how much to ask for your property. Just be sure not to rely solely on these values as they are only estimating, and you should get a professional valuation as well.

Another benefit of trying to sell such homes is that the business owner below likely wants to ensure their neighbourhood is kept in good condition, which can make your property seem more enticing to someone looking at potentially buying your home.

Potential problems with selling a property above commercial premises

Unfortunately, whilst there are times when a flat above a pub, shop or other business can be attractive to buyers, you’ll find as a seller you might face some potential drawbacks.

If the flat sits above a business that produces bad odours, such as a fast food venue where the smells drift up to your home, this could make it harder to find a buyer.

And if there are any other issues with the commercial premises, or with the neighbourhood itself that are tied to the business, this can also deter mortgage lenders from wanting to finance the purchase of the property. As such, you could struggle to find a buyer who can afford to buy your home if it has any of the potential problems that might affect its value on the property market or mortgageability.

However, if your flat fits any of the above descriptions there’s no reason to worry that you will never be able to find a buyer for your home. Your best choice could be to contact a fast property buying company such as LDN Properties that has experience purchasing homes of all types. They can likely make you a swift and competitive cash offer to buy your flat even in this situation.

Questions and answers about selling your property above commercial premises

We have bought and considered many homes above commercial premises since launching our fast property buying company in 2003. During that time we’ve heard a number of questions from homeowners about selling such flats, and below you’ll find our top three answers:

Want to sell your home above commercial premises? Call LDN Properties today

Call LDN Properties at 020 7183 3022 if you own a home above commercial premises and you’re looking to sell. We can give you a simple and zero-stress way to receive a swift cash offer for selling your home, with absolutely no fees attached. You can also reach our friendly team of experts by clicking on the "Get Offer" tab below for a no-obligation quote.