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Own a Flat above a shop or commercial property and need some equity release or a mortgage in 2024?

flat above commercial property equity release
  • Release cash from your flat even if it’s above commercial premises
  • Ideal for flats above shops or other commercial property
  • Get a valuation with the full value of the property
  • Fixed rate 4.56%
  • No need to make monthly payments unless you want to make a payment
  • Use the money to pay off debts
  • Flat above a restaurant, drinking establishments and others accepted

How much can I borrow?

You can release 60% of your home’s valuation. As an example, if your home is valued at £250000 you can borrow £150000.

  • Free No Obligation Quote

  • Please enter a number from 10000 to 2000000000.
  • Please enter a number from 50000 to 10000000.
  • Leave blank if no mortgage outstanding
  • About You

regulated by the financial conduct authority
getting a mortgage on commercial premises
flats above shops viewed from google earth
first time mortgage lender
registered office buy to let mortgage lender may apply different mortgage terms
professional services commercial properties mortgage lenders

Buying a self contained flat above a late night shop

Finding a mortgage lender and getting a mortgage above a shop may be more difficult than say a normal freehold detached house.  You are likely to need a different bank or building society that is a specialist to get mortgages near commercial premises.

It is usual to encounter people seeking out lump sum lifetime mortgages, monthly payment lifetime mortgages or home reversion plans, however, More to life like The Exeter Equity Release is keen to see evidence of your circumstances in the form of pension statements.

Legal & General - Flexible Indigo flat above shop equity release

What are Hinckley & Rugby Building Society interest rates for equity release?

Hinckley & Rugby Building Society interest rates for equity release are 1.93% MER.

Tough-to-mortgage home variants include properties that will be assessed for flood risk, leasehold properties with a short lease, typically less than 70 years, or a defective lease, properties with structural problems, mundic homes and concrete panel houses.

get a mortgage with Legal & General - Flexible Blue

Tough-to-finance property titles can include flats of less than 30 square metres in any location, properties with a large number/scale of outbuildings, agricultural use of the land and any outbuildings, properties where there is a self-contained part of the property or annexe, i.e. basement flat etc and properties that have a private water supply provided a contract is in place with an approved maintenance company for regular testing and maintenance.

Good mortgage advice from Canada Life - Lifestyle Lite

Hard-to-finance home variants can include properties with post-1945 asbestos or similar composition roof tiles, timber framed properties built between 1920 and 1965, privately developed flats, maximum four storeys with a lift, coach houses i.e. freehold properties with garages beneath and freehold flats (England, Wales, Northern Ireland).

Do Hinckley & Rugby Building Society do Equity Release?

Yes, Hinckley & Rugby Building Society Equity Release is 2.12% MER.

Pure Retirement - Classic Super Lite estate agents valuation

Understanding Equity Release, Lifetime Mortgages, and Commercial Properties in the UK

Introducing Equity Release and Lifetime Mortgages

Equity release refers to a range of products that allow you to access the equity (cash) tied up in your home if you are over the age of 55. It can be an attractive option for some people to supplement their pension or to fund a significant expenditure. One of the most popular forms of equity release is the lifetime mortgage. Through a lifetime mortgage, homeowners can borrow a proportion of their home’s value, with the interest being rolled up. The loan and rolled-up interest are repaid when the homeowner dies or moves into long-term care.

Venturing into Commercial Property Mortgages

With the realm of equity release primarily focused on residential properties, it’s essential to understand how mortgages for commercial properties function. These can sometimes differ significantly from their residential counterparts.

Basics of Commercial Mortgages

A commercial mortgage is designed for businesses and investors who want to purchase or refinance income-producing properties. These can range from offices and shops to factories and workshops. A key distinction is that a commercial mortgage is secured against the property being financed, but the decision often hinges on the profitability and financial health of the business itself.

Mixed-Use and Semi-commercial Properties

In the UK’s property landscape, mixed-use mortgage products cater to properties that combine both residential and commercial elements, such as a shop with a flat above it. This blurring of boundaries presents unique challenges and opportunities for potential investors and business owners.

  • Mixed Use Mortgages: A mixed-use mortgage caters to properties that have both a residential and commercial component. Mixed-use property mortgage providers recognize the dual nature of these properties and often tailor terms accordingly.
  • Semi-commercial Mortgages: The term semi-commercial mortgage or semi-commercial mortgages often refer to the same concept as mixed-use mortgages. Whether it’s a semi-commercial mortgage lenders offering specialized rates or individuals seeking the best semi-commercial mortgage rates, it’s evident that this segment of the mortgage market has a bespoke nature.

Navigating Interest Rates and Mortgage Calculators

Interest Rates for Commercial Mortgages

Understanding commercial mortgage rates UK is crucial for prospective borrowers. Interest rates on these mortgages can vary based on several factors, including the lender, property type, and the overall business risk.

  • Interest Only Commercial Mortgage: With an interest only commercial mortgage, borrowers pay only the interest on the mortgage amount each month. The principal remains unchanged, and the full amount will need to be repaid at the end of the term.
  • Comparing Rates: Tools that compare commercial mortgage rates can be invaluable. Whether you’re seeking commercial property mortgage rates UK or just general rates, platforms that compare commercial mortgages can provide insights to secure the best deal.

Leveraging Commercial Mortgage Calculators

There are several commercial mortgages calculator tools available that help prospective borrowers estimate monthly repayments. Whether it’s the commercial mortgage calculator UK for general properties or a specific semi-commercial mortgage calculator, these tools are invaluable in financial planning.

  • Calculating for Various Property Types: Whether it’s a mortgage calculator for commercial property or a buy to let commercial mortgage calculator, having specific tools tailored to property types enhances their accuracy.

Securing a Commercial Mortgage in the UK

The Commercial Mortgage Process

For those wondering, how does a commercial mortgage work or how to get a commercial mortgage, the process typically involves a more rigorous evaluation than residential mortgages. Lenders evaluate the potential borrower’s creditworthiness and the viability of the business that will occupy the commercial space.

Engaging with Commercial Mortgage Lenders

In the UK, there’s no shortage of commercial mortgage lenders UK. Whether you’re seeking specific commercial mortgage lending options or general commercial lenders UK, understanding their criteria is crucial.

  • Lending for Different Property Types: Mortgages for commercial property, whether it’s a mortgage for a commercial property or mortgages on commercial property, often require specialized knowledge from the lender’s side.
  • Evaluating Commercial Mortgage Lenders: Whether it’s evaluating a specific commercial mortgage lender or the broader offerings of commercial mortgages UK, due diligence is crucial for potential borrowers.

Reflecting on the Landscape of Commercial Mortgages

Commercial mortgages, whether it’s understanding a mixed use mortgage or navigating commercial property mortgages rates, play a pivotal role in the UK’s business property sector. With equity release and lifetime mortgages being pivotal for residential homeowners, commercial mortgages provide businesses with the financial support they need to grow and thrive. Whether you’re exploring mortgages for commercial property or seeking the best commercial mortgage rates UK, being informed and proactive in your approach will serve you well in the long run.

Delving Deeper into Commercial Mortgages

Unraveling the Jargon: Definitions and Meanings

In the realm of commercial mortgages, it’s not uncommon to encounter terms and phrases that may seem unfamiliar to the uninitiated. Here’s a brief overview of some key terminologies:

  • Commercial Mortgage: At its core, a commercial mortgage is a loan secured against a property which is used for business purposes.
  • Mixed Use Mortgage: This refers to a mortgage designed for properties that serve both residential and commercial functions, like a ground-floor shop with flats above.
  • Semi-Commercial Mortgage: Often synonymous with mixed-use mortgages, semi-commercial mortgages cater to properties that combine both residential and commercial spaces.
  • Interest Only Commercial Mortgage: As the name suggests, borrowers of this mortgage type pay only the interest of the loan for a certain period, with the principal amount repaid in a lump sum at the end.

Choosing the Right Commercial Mortgage Lender

In the vast sea of commercial mortgage lenders UK, finding the one that aligns with your needs can be a daunting task. Different commercial lenders UK might offer specialized packages, each with its unique benefits and terms. Research is key here:

  • Commerical Morgages and Mortages: While the terms may seem similar, it’s essential to recognize that they both refer to commercial mortgages in the UK. However, spelling differences can often lead to confusion.
  • Commercial Mortgages UK: When seeking out mortgages for commercial property, it’s crucial to tap into the offerings of reputed lenders in the UK, known for their expertise in the domain.
  • Commerical Mortgages: Again, this term refers to mortgages taken out on commercial properties, with the difference in spelling being a common typographical error.

Insights into Mortgage Rates and Calculations

The Importance of Comparing Rates

Mortgage rates, especially for commercial properties, can significantly impact the overall cost of the loan. Therefore:

  • Commercial Mortgage Rates UK: It’s essential to be aware of the current commercial mortgage rates UK to make informed decisions about borrowing.
  • Commercial Property Mortgages Calculator: Tools like commercial property mortgage calculator UK and mortgage calculator commercial property help prospective borrowers determine monthly repayments, enabling better financial planning.
  • Compare Commercial Mortgages: With multiple commercial mortgage compare platforms available, you can get a clearer picture of available options.

Commercial Mortgage: From Inquiry to Approval

The process of securing a commercial mortgage goes beyond just filling out an application:

  • How Does a Commercial Mortgage Work: The journey begins with understanding how does commercial mortgage work, which involves assessing property value, business viability, and borrower’s creditworthiness.
  • How to Get a Commercial Mortgage: For those keen on navigating the maze of commercial mortgages, the first step is due diligence – understanding the prerequisites, the paperwork, and the processes.

The Wider Landscape of Commercial Property Financing

While residential properties have the world of equity release and lifetime mortgages, commercial properties boast a vast and complex landscape of their own. Commercial mortgages are the linchpins of this sector, providing businesses the leverage they need to secure properties, expand operations, or refinance existing assets. Whether it’s deciphering what is commercial mortgage or understanding the nuances of commercial property mortgage rates UK, a comprehensive understanding will empower borrowers to make decisions that align with their business aspirations and financial health.

The Dynamics of Equity Release and Lifetime Mortgages in the Context of Commercial and Retail Properties

Equity release and lifetime mortgages are increasingly becoming an essential part of the financial portfolio for many in the UK, especially when considering the options for commercial and retail spaces. However, the landscape can get complicated, given the intricacies of retail spaces combined with residential zones, such as flats above shops.

Understanding the Nuances of Buying Retail Spaces and Accommodations

The Attraction of Shop Spaces with Flats Above

For many, the idea of buying a shop with flat above can be quite appealing. It’s not merely about buying a shop but rather an integrated property that serves dual purposes. For instance, the flat above shop provides an immediate residential area, which can either be used by the shop owner or rented out to generate additional income. This model, often referred to in real estate circles as a shop with an integrated living space, is increasingly in demand.

However, the process of buying shop spaces combined with living areas does pose its own set of challenges. For starters, mortgage for flat above shop may differ from the standard residential mortgage given the mixed use of the property. Yet, this hasn’t deterred many from exploring options, with searches for flats above shops for sale and shops to lease seeing an upward trend.

Navigating the Leasehold and Freehold Landscape

When it comes to buying a leasehold business or even leasehold commercial property, understanding the difference between leasehold and freehold is critical. Here’s a basic breakdown:

  • Freehold: This implies that the buyer owns the property and the land on which it stands. Searches for freehold fish and chip shops for sale or freehold shop for sale near me are illustrative of individuals seeking complete ownership.
  • Leasehold: In this case, while the buyer owns the property, they don’t own the land. Instead, they have a lease from the freeholder to use the property for a number of years, decades or even centuries. When considering buying a business leasehold, it’s essential to be wary of the lease’s length.

For those interested in buying retail property, it’s crucial to determine whether the property is freehold or leasehold. The intricacies involved in acquiring a freehold commercial property for sale UK can differ from those of a leasehold one.

Residential Considerations: Flats vs. Houses

To Buy or Not to Buy: Flats and Their Viability

The ongoing debate of flats vs houses often comes down to personal preference, but there are certain practical considerations to factor in. Some argue that why buying a flat might not be such a good idea, primarily due to the complexities of shared ownership and annual service charges. On the other hand, a flat to buy near me might offer proximity to urban areas, amenities, and perhaps even one’s workplace.

When it comes to buying a flat, especially flat above a shop, the appeal often lies in the combined utility it offers. However, concerns around flat above shop mortgage rates and the viability of mortgage on flat above shop can sometimes deter potential buyers.

Pondering the Pros and Cons: Houses Over Flats

While the compact nature and urban accessibility of flats are undeniable, houses offer space and often come without the complications of shared ownership. So, when considering is it better to buy a flat or a house, these factors play a significant role.

Furthermore, many are now exploring the idea of converting commercial spaces into residential zones. The concept of can you legally live in a commercial property UK is gaining traction, with many looking at renovations and repurposing commercial spaces for residential use.

Delving Deeper into Commercial Offerings

Shops, Cafes, and Takeaways

From shops for lease to cafe for lease near me, commercial spaces offer various opportunities. Those keen on the food business often look for takeaway for rent or even freehold convenience store for sale to establish their foothold in the retail sector.

Decoding the Shophouse and Its Appeal

A term that’s seen a resurgence in property discussions is what is a shophouse. Rooted in history, shophouses were commercial cum residential units where the ground floor served as a shop, and the upper levels were used as living spaces. Today, this model can be seen with many shops and flat to rent, merging the old-world charm with modern-day utility.

Making Informed Decisions in the Property Market

Whether you’re exploring options for buying a unit, seeking freehold shops for sale, or just curious about is buying a flat a good idea, understanding the nuances of equity release and lifetime mortgages is essential. As property landscapes evolve, especially in the commercial and mixed-use sectors, being equipped with the right knowledge can make all the difference. Whether it’s a shop and flat for sale or a freehold fish and chip shop for sale near me, the property market in the UK offers a plethora of opportunities for both investors and business owners.

Smaller Building Societies and Lenders

Large banks and Building Societies

Age-related offers – use your pension income

Poor Credit Equity Release

Difficult to mortgage property types include properties in poor condition, properties where letting arrangement where the tenancy agreement is not appropriate, leasehold properties (England, Wales, Northern Ireland) subject to a lease length of 160 years, crofted houses and properties where the borrower(s) own the freehold with any connected party.

restaurant mortgage choices with rental income for a small size mortgage

Do Hinckley & Rugby Building Society do Pensioner Mortgages?

Yes, Hinckley & Rugby Building Society Pensioner Mortgages are 2.19% APRC.

Equity Release LTV from mortgage brokers

  • 60% home reversion schemes The Exeter Equity Release
  • 60% loan to value home reversion plans Age Partnership
  • 60% LTV monthly payment equity release Together Money
  • 50% loan to value lump sum lifetime mortgages Key Retirement
  • 35% loan to value monthly payment lifetime mortgage Prudential
  • 35% loan to value (LTV) lumpsum lifetime mortgages 1st Stop Home Loans
  • More 2 Life Capital Choice Plus Plan
  • L&G Legal & General Flexi Max Voluntary Repayment Plan
  • Bridgewater Lifetime Mortgage
  • More to Life Capital Choice Plan

Non-Standard Property Home Index

  • L&G Legal & General Premier Flexible Lifetime Mortgage
  • Royal Bank of Scotland Lifetime Mortgage
  • Saga Lifetime Mortgage
  • Bridgewater Equity Release
  • Canada Life Prestige Flexi Option company number
  • More 2 Life Flexi Choice Voluntary Payment Super Lite
  • Aviva Equity Release Plans
  • TSB Equity Release Plans
  • NatWest Interest Only Lifetime Mortgage
  • Royal Bank of Scotland Lifetime Mortgage


Some of the most common loan to value percentages of Aviva interest only retirement mortgages for over 70s, Zurich retirement mortgages over 70, Churchill retirement mortgages over 70, Coventry Building Society mortgages for over 65, Newcastle Building Society mortgages for over 65 and Cumberland Building Society over 60 mortgages are 35%, 55% and 70%.

More to life

Does Hinckley & Rugby Building Society have positive reviews for equity release?

Yes, Hinckley & Rugby Building Society reviews are tip-top for equity release.

One Family Lifetime Mortgages

Does Hinckley & Rugby Building Society offer Retirement Mortgages?

Yes, Hinckley & Rugby Building Society Retirement Mortgages are 1.87% APRC.

Pure Retirement Drawdown Lifetime Mortgages

Downsides of Home Reversion Plans

A monthly payment lifetime mortgage can reduce your estate value. Lump-sum lifetime mortgages may impact the ability to get state benefits. You may need to pay an advisor’s fee and you could have higher rates to pay with some schemes.

Common loan to value percentage ratios of LV= mortgages for people over 50, More to life interest only mortgages for people over 70, One Family interest only lifetime mortgages for over 70s, Yorkshire Bank mortgages for over 65, Metro Bank later life interest only mortgages over 60 and SunLife interest only mortgages for people over 70 are 45%, 60% and 70%.

The 1st and 2nd charge lender will want to know if the property is a semi-detached freehold house or a Leasehold house and if the resident is an Owner Occupier.

Do Hinckley & Rugby Building Society do Equity Release Under 55?

Yes, Hinckley & Rugby Building Society Equity Release Under 55 is 1.9% MER.

Business owners who could benefit from equity release estate planning

  • Treatment and coating of metals Long Sutton
  • Manufacture of electrical and electronic equipment for motor vehicles and their engines Nelson
  • Electrical installation Ponteland
  • Other retail sales in non-specialised stores Eye
Mortgages lenders For People With Defaults

Common loan to value percentage ratios of Lloyds Bank over 60 lifetime mortgages no fees, Barclays Bank mortgages for 60 plus, NatWest remortgages for people over 50 years old, L&G interest only mortgages for people over 70, Bank of Scotland retirement interest only mortgages over 60 and Nationwide interest only mortgages for over 65 year olds are 45%, 55% and 70%.

flat above a shop

Towns of the UK where equity release is popular

  • Burnham-on-Sea
  • Haywards Heath
  • Sevenoaks
  • Sutton
  • Cirencester
  • Warminster
  • Guisborough
  • Colchester
  • Crowland
  • Newport Pagnell
  • Brighouse

Lenders for Equity Release

  • Aviva
  • Step Change
  • More to life
  • Stonehaven Mortgage
  • Zurich

Do Hinckley & Rugby Building Society do Lifetime Mortgages?

Yes, Hinckley & Rugby Building Society do lifetime mortgages at 2.15% APRC. Hinckley & Rugby Building Society Lifetime Mortgages can have an LTV of 65%.

Equity Release Loan To Value – help from mortgage brokers to make the best mortgage choices

The older you are and the more serious your illnesses you are the more money you can release.  The rendering decision will depend on the mortgage provider the property value and the type of property with a rental income.  A small-size mortgage will involve much lower mortgage repayments especially for buy to let mortgages.

Equity release is an idea product for flats part of a semi-commercial property, mixed-use titles and commercial buildings nearby.

Some of the most popular pensioner mortgage products are TSB retirement mortgages, Barclays Bank over 60 lifetime mortgages, Post Office later life borrowing schemes, L&G mortgages for over 65 and Nationwide Building Society interest only mortgages for over 65 year olds.

So what can a mortgage broker do?

A mortgage broker can find mortgage lenders that do United Kingdom flat above a shop mortgage products, depending on the business category, risk profile of the business property if it’s a flat above a restaurant or has drinking establishments nearby.

Your mortgage application will be done with the help of a mortgage adviser and will depend on your credit score and if you have any other mortgages for flats from high street lenders.  If you have credit issues the lender criteria may take a close look at you if you are self employed and have debts secured against your home registered in England.

Think carefully before securing debts against your home as this could affect your mortgage options and eligibility requirements for a mortgage offer in the future.

To get a mortgage on a flat above a shop mortgage advisors will look at the business categories and resale value of the flat above a restaurant or food takeaway outlets location. The current market value and market conditions around the food shops may result in a valuation haircut by up to 10%.

For flats above commercial premises, you may be better off with a specialist mortgage on your residential property with a residential mortgage and having a difficult to mortgage property unencumbered.  The lending decision at the end may be more positive.

An independent mortgage broker may advise against a restaurant mortgage and advise securing other debts on your own home instead.