Commercial To Residential Conversion Finance

Getting the right finance in place for a commercial to residential conversion project could be critical to its success.

Having the right funding, at the right time is important for any property development project. With a commercial to residential conversions, finance may be required for different parts of the project. Such as:

  1. Finance to purchase commercial land and buildings
  2. Financing the cost of commercial conversion works
  3. Exit finance, such as Buy To Let Mortgages

It may be possible to use one lender for everything or it may require different lenders for different stages of the conversion.

That’s why working with a specialist property finance broker like us, can help make sure all your finance needs are taking care of from start to finish.

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Types of Commercial To Residential Conversion Finance

There are different ways to fund a commercial conversion project and also eligibility criteria varies between different lenders.

The main two product types being Bridging Loans and Property Development Finance.

When it comes to commercial conversion projects, each one is unique and often different so will require a bespoke financial solution to get the project finished.

Commercial To Residential Conversion Bridging Loans

A bridging loan may be suitable for some commercial to residential conversion projects.

Typically a bridging loan may be used if there are no major structural changes to the building, no ground up element, the building is not being demolished and for smaller projects.

Features of a Commercial Conversion Bridging Loan

  • £25k to £10m
  • Up to 75% LTV towards the purchase price
  • Up to 100% of build costs funded
  • 100% funding with extra security (1st or 2nd charge)
  • No Quantity Surveyor (QS) required
  • 12 – 18 month terms
  • Lending across the UK in England, Scotland, Wales and Northern Ireland

Click here to apply for a Commercial Conversion Bridging Loan

Commercial To Residential Conversion Development Finance

In some instances a commercial conversion may require Property Development Finance.

This tends to be for larger and more complex projects. Such as when there are major structural works required, demolition of existing structures and significant ground up development.

Features of Commercial Conversion Development Finance

  • £500k to £200m
  • Typically up to 85% LTC
  • Up to 75% LTGDV
  • Quantity Surveyor (QS) usually required
  • 24 months terms
  • Lending across the UK in England, Scotland, Wales and Northern Ireland

Click here to apply for Commercial Conversion Property Development Finance

Commercial Conversion Key Considerations

Have you considered these key points below for your commercial to resi conversion?

Commercial Conversions Key Considerations

FAQ: Commercial Conversion To Residential Finance Questions

Here are some common questions we are asked about finance for commercial conversion to residential property developments.

Can I use a Bridging Loan for Commercial To Residential Conversion?

Yes a bridging loan can be used to finance a commercial to residential conversion project. A bridging loan will typically provide up 75% LTV of the property purchase cost and up to 100% of the cost of works (in arrears).

Do I need Development Finance for a Commercial To Residential Conversion?

You don’t necessarily need development finance for a commercial to residential conversion, in some instances a Bridging Loan can be used instead. Typically development finance would be required for more complex projects with elements such as ground up building work, significant structural work and demolition of existing structures.

Do you need planning permission to change from commercial to residential?

You don’t always need full planning permission to convert a building from commercial to residential use. Some commercial conversion can be done under Permitted Development rights, from the 1st August 2021 Class MA was introduced.

This allows the conversion of Use Class E buildings such as commercial/office space into new homes. If your project meets a set of conditions, you will not need to apply for full planning permission. But you still need to apply for prior approval from your local council.

Do you need planning permission before applying for commercial conversion finance?

It’s possible you may need to buy a property or land before apply for full planning permission. In this case you can use a short term bridging loan to buy the land or building while you apply for planning. Once planning is granted you can then refinance the property and can even benefit from the higher value due to any planning gains since it was purchased.

Apply today for Commercial To Residential Conversion Finance

As an independent property finance brokers we specialise in arranging funding for property investors and developers across the UK.

Let us help you on your next commercial conversion project by calling 0161 5469128 or completing the form below.