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Living above or beside a business

A home above, below or beside commercial premises is assessed case by case rather than against a list of businesses. This sets out what one provider publishes, what a valuer is weighing when a case is referred, and what you can establish before anyone visits.

The criteria we opened do not decline this and they do not list banned trades. They refer it, in one sentence, to somebody who has been to look.

Equity release may involve a lifetime mortgage, secured against your property, or a home reversion plan. It will reduce the value of your estate and impact funding long-term care.

How this page is kept
Written by
Equity Release Facts editorial
Last checked
6 September 2026
Next review
6 March 2027

One sentence, and it is a referral

“Any property above, below or adjacent to commercial properties. All cases are subject to valuers comments.”

Legal & General, opened 6 September 2026 · listed as “Refer”

One sentence, and what it does is send the case to a valuer rather than to a rule. There is no list of acceptable and unacceptable businesses in these criteria, and no distance.

One provider on one date, quoted as an example of how such a rule can be written. Other lenders publish their own and some are stricter.

Three words worth noticing
Above The flat over the shop, which is what everybody pictures.
Below Less obvious and just as caught: a ground-floor home with commercial use over it.
Adjacent Next door, sharing a wall or a boundary. Not a distance, and not defined further.

What the valuer is actually weighing

What the business actually is, when it operates, how the two buildings physically relate, whether there is separate access, and how readily the home would sell with the business there. All of that is a judgement about resale, which is what a lender is ultimately lending against.

Which is why a solicitor’s office downstairs and a late-night takeaway downstairs are not the same case, even though the criteria give them the same one-line treatment. The rule refers it; the valuer decides it.

What this page will not do

Tell you that living near a pub means no. It does not, on the criteria we opened, and a page that said otherwise would be inventing a rule that is not there.

It will also not tell you the opposite. A referral is not an acceptance. It means somebody has to go and form a view, and the view has not been formed yet.

Before you speak to anybody

All of this is a walk to your own front door and a look at the sign next to it. Because the case gets referred rather than decided, what you can describe accurately is what the valuer will be working from.

Worth knowing

Equity release may involve a lifetime mortgage, secured against your property, or a home reversion plan. It will reduce the value of your estate and impact funding long-term care.

Where this comes from
  1. 01 Legal & General · opened 6 September 2026 Lifetime mortgage lending criteria (Legal & General) The single sentence quoted on this page, listed under refer rather than decline. Their criteria name no specific trades and set no distance.
Worth establishing first

Observation rather than paperwork, apart from the last one.

  • What the business is, precisely Look at the sign. A solicitor's office and a late-night takeaway are both commercial premises and no valuer treats them the same.
  • Its hours The door, or its website. Hours are the shorthand for how much the business affects living there.
  • How the buildings physically relate Your own observation. Shared wall, shared entrance, shared roof, or simply next door with a gap.
  • Whether your home has its own separate access Your own front door. A separate street entrance is a meaningful difference and worth saying early.
  • What is above and below you, not just beside The criteria name all three. If there is commercial use underneath your home, that counts.
  • Anything on the title about use Your solicitor. Mixed-use titles and restrictions on use are a separate question from proximity.

Questions worth asking

Because this is referred rather than decided, the useful questions are about what would help rather than about whether you qualify.

  1. 01

    Is my property above, below or adjacent to the commercial use?

    All three are named in the criteria we have. Being clear which one applies to you saves a conversation.

  2. 02

    What would the valuer be weighing, given it is referred rather than decided?

    Saleability. Asking what specifically would help lets you provide it rather than wait for it.

  3. 03

    Does my home have its own access, and does that help?

    Worth raising early. It is one of the concrete differences between two otherwise similar properties.

  4. 04

    Which lenders refer this and which decline it outright?

    For an adviser with the whole market. One lender referring is not the same as the market referring.

  5. 05

    If it is referred and then declined, what was the actual reason?

    Ask in writing. "Commercial premises" is not a reason; what the valuer said about saleability is.

Read next

What has changed on this page
  1. First publication. Legal & General's published criteria opened and read for commercial proximity specifically.
How this page is kept
Written by
Equity Release Facts editorial
Last checked
6 September 2026
Next review
6 March 2027
Checked 10 September 2026
[6.20%]lowest lump sum rate, fixed for life[lender rate sheets] [6.44%]lowest drawdown rate[lender rate sheets] 43.5%most you could release at 70LTV schedule, July 2026 54%most you could release at 80 or overLTV schedule, July 2026 55Legal & General's youngest applicantL&G lending criteria, 6 September 2026 £0to pay each month unless you choose tosubject to lender terms [6 to 8 weeks]typical time from application to money £70,000Legal & General's minimum for a houseL&G lending criteria, 6 September 2026

Questions people ask about this

Short answers to the things that come up most. None of it is advice, and every figure on this page carries its source.

Does living near a business stop equity release?

Not automatically. The published criterion refers rather than declines, and it is one sentence rather than a list of trades.

Does it matter what the business is?

The wording names no trades. That is worth knowing, because a great deal of third-party content lists takeaways and pubs as though the list were published somewhere.

Does it only apply to premises next door?

No. It catches commercial use below the property as well as beside it, which is the part most often missed by somebody living above a shop.

What should I be ready to describe?

What the business actually is, where it sits in relation to your home, and whether any part of your own property is used commercially. Those are facts you can state on day one.

Worth knowing

Equity release may involve a lifetime mortgage, secured against your property, or a home reversion plan. It will reduce the value of your estate and impact funding long-term care.

Talk it through with an adviser

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One qualified equity release adviser. They will go through your figures and tell you if there is a better answer. It costs nothing and commits you to nothing.

Advice is required to proceed with equity release and there may be other options which better suit your circumstances. Only if your case completes would an advice fee be payable, and the adviser will tell you what theirs is before you commit to anything. Other lender and solicitor fees may apply.

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