Do I need planning permission to convert?

Usually yes. Some minor changes of use are permitted development, but most residential-to-commercial conversions require a planning application.

Can I keep my residential mortgage?

No. Using a residentially mortgaged property for commercial purposes breaches your mortgage terms. You'll need to refinance onto a commercial product.

What about converting to an HMO?

HMOs (Houses in Multiple Occupation) may need an HMO licence and potentially planning permission. Some residential buy-to-let lenders accept HMOs, while larger HMOs may need commercial products.

Is commercial conversion profitable?

It can be highly profitable, particularly in areas with strong commercial demand. The key is ensuring the post-conversion value and rental income justify the conversion costs.

Residential to Commercial Conversion

Converting a residential property to commercial use requires specialist finance and planning consent. We guide you through both the mortgage and planning process.

Converting Residential to Commercial Property

Converting a residential property to commercial use — such as turning a house into offices, a shop, or a care home — requires planning permission for change of use and a specialist mortgage product. Your existing residential mortgage won't cover commercial use, so you'll need to refinance onto a commercial or semi-commercial product. We navigate both the finance and planning considerations.

Specialist change-of-use mortgage products
Planning permission guidance for commercial conversion
Finance for the conversion works if needed
Semi-commercial products for mixed-use conversions
100% fee-free expert advice

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Your home may be repossessed if you do not keep up repayments on your mortgage.

Planning Permission for Change of Use

Converting from residential to commercial requires planning permission under the Use Classes Order. Some conversions may be possible under permitted development rights, but most require a full planning application. Your local planning authority will consider the impact on neighbours, parking, traffic, and the character of the area.

Mortgage Implications

Your residential mortgage prohibits commercial use. You'll need to either remortgage onto a commercial product or obtain consent from your existing lender (which is rarely granted). A commercial or semi-commercial mortgage will reflect the property's new use and value.

Conversion Finance

If the conversion requires building work, you may need development finance or a commercial mortgage that includes funds for refurbishment. These products release funds in stages as work progresses, similar to self-build mortgages.

Valuation Changes

The property's value may change significantly when converted to commercial use — either up or down depending on location and demand. A commercial valuation will assess the property's value based on its potential rental income and commercial comparables.