If you are the owner of the property that contains a commercial unit with a flat above it.
You maybe looking at wanting to perhaps sell the flat to unlock some extra cash.
This week we look at what the process involves and key points you may wish to consider before going full steam ahead.
This results in the best outcome for both you as the owner and the new home buyer.
Let‘s talk Title Deeds
The first option to consider is your title deeds. If you own the commercial property with the flats above it the chances are that it is more than likely listed under one title deed.
Rather than splitting the title deeds up and the free hold of the site. This could make it more difficult resulting in a property that is deemed un mortgageable.
A simpler route to consider is making the leases significantly longer resulting in avoiding the complexities surrounding the title deeds.
This would also result in the flat owner having a title that is as good as ’freehold’.
It would also mean that the buyer would be directly responsible to you for the covenants in the lease ensuring appropriate management of the property.
Things to consider before selling your flat?
Contractual Terms and Rent - When looking to sell on the open market it’s important to consider all of your options to ensure that the property is well marketed. This includes exploring what contractual terms and rent would be the most appealing.
Parking Spaces - Are there any parking spaces included or would you consider allocating one or more spaces for the residential unit?
Space Planning - Are you optimising the best use of space? Would that spare bedroom be more appealing to your chosen target market? At ICI Architecture our services are all about realising your projects full potential and maximising the most efficient use of space! Whilst the works are being under taken you can use our 3D visuals to market the property!
Site Entrances - Is the entrance in the most accessible place? Will the flats have their own entrance or will rights of way need to be granted to allow access to part of the commercial unit.
Utilities - With the cost of living rising it maybe better to consider having separate meters installed to ensure the flat owner is responsible for their own bills. This results in less homework for you as the landowner to split the bills up and equally less headache for the flat owner.
Repairs and Maintenance - A leaky roof or essential external works? Nobody wants nasty surprises but It maybe worth exploring the options of asking for a regular contribution towards large items in preparation for any large unexpected works that needs to be undertaken.
Covenants - What covenants would you like to be included within the tenancy agreement this can include the standard payments of rent and service charges. But can also include things like parking arrangements and procedures as well as if you allow for the new flat owner to carry out any alterations or redecorating etc.
For more information and to book a FREE initial consultation email team@iciarchitecture.co.uk or call 01260 602 005
