Commercial to residential
Offices, retail units and light industrial buildings converted under permitted development rights or full planning.
Conversions and change of use
Conversion finance
Conversion finance funds the purchase and works where an existing building is changed into something else — commercial into residential, a single dwelling into flats, or a house into an HMO. Because the value is created by the change of use as much as the works, lenders look closely at the planning position.
Whole case packaged for you
Fees disclosed upfront
Brokers, not a lender
Get an indicative quote
Step 2 of 7What kind of scheme?
Lenders price ground-up and conversion work differently.
How many schemes have you completed?
When it is used
Situations we see most often
House to flats
Splitting a large house into self-contained units, where each flat is valued and sold separately.
HMO conversions
Creating licensed houses in multiple occupation, valued on the income they produce rather than bricks and mortar.
Who it suits
- Investors buying vacant commercial buildings with conversion potential
- Landlords creating HMOs or multi-unit blocks from existing stock
- Developers using permitted development rights to avoid a full planning application
- Owners of mixed-use buildings reconfiguring the residential element
| Typical terms | Indicative range |
|---|---|
| Day one advance | Typically up to 70% of the current value |
| Works funding | Released in arrears against inspected stages |
| Loan to GDV | Usually capped around 65% to 70% |
| Term | Commonly 12 to 18 months |
| Planning | Prior approval or full consent normally required before drawdown |
| Exit | Sale of units, or refinance onto buy-to-let or commercial |
Indicative ranges based on typical specialist market terms. Your actual terms depend on the property, your circumstances and the lender the case is placed with.
How Amram handles it
What we actually do for you
We are brokers. We do not lend our own money — we package your case and place it with the lender most likely to fund it, then manage it to completion.
The conversation
We look at the building, the planning route, the works needed and how the finished units will be valued.
Packaging the appraisal
We package the planning position, the schedule of works and the comparables for the finished units.
Lender sourcing
We approach lenders comfortable with the specific conversion type — HMO and commercial to residential are different markets.
Valuation, monitoring and legals
We coordinate a valuation reporting both current value and value on completion, plus the monitoring surveyor.
Drawdown and exit
Drawdowns follow the works. On completion we arrange the exit, whether that is sales or a refinance of retained units.
What you’ll need
Have these ready and it moves faster
The single biggest cause of delay is a case assembled as it goes. We will ask for these at the start so the file is lender-ready before it is submitted.
- Prior approval or full planning consent for the change of use
- Existing and proposed floor plans
- A costed schedule of works and the build programme
- Comparable evidence for the finished units, for sale or rent
- Licensing requirements and local article 4 directions where relevant
- Your track record on similar conversions
Situations
Does one of these sound like you?
Illustrative situations rather than client case studies — the kinds of enquiry this market sees, and what usually works in each.
“I want to convert a commercial building into flats”
An empty office, shop or light industrial unit that would be worth considerably more as flats.
What usually works“I want to turn a house into an HMO but lenders keep declining”
The conversion stacks up on paper but mainstream lenders will not fund the property or the plan.
What usually works“This is my first development and lenders keep asking about my track record”
You have the site and the planning, but no completed schemes to point at.
What usually worksQuestions
Frequently asked
Do I need planning permission before I can get funding?
For most conversion lending, yes — either full consent or prior approval under permitted development. Buying without consent is normally a bridging case at a lower loan to value, refinanced onto a conversion facility once consent is granted.
How are HMOs valued?
Larger licensed HMOs are often valued on an investment basis using the income they produce, which can be considerably higher than the bricks-and-mortar value. Smaller ones are usually valued as a standard house. Which basis applies materially changes the loan available.
What is an article 4 direction?
A local restriction that removes permitted development rights in a specific area, so a conversion that would be automatic elsewhere needs a full planning application. Check before you buy — it catches people out regularly.
Can I convert offices to flats without full planning?
Often, through permitted development, subject to prior approval and the conditions that apply. The rules change periodically and vary by location, so confirm the position for the specific building before committing.
Is this bridging or development finance?
It depends on depth. A light conversion with modest works can sit on a refurbishment bridge. Anything involving significant structural change, multiple units and a long programme belongs on a development facility with staged drawdowns.
Will the lender want a building warranty?
For conversions creating new dwellings, usually yes — and your eventual buyers’ mortgage lenders will want one too. Arrange it at the start; retrofitting a warranty is difficult and expensive.
Keep reading
Related pages and guides
Development finance
Staged funding for ground-up builds, conversions and heavy refurbishment.
View pageCommercial bridging
Shops, offices, industrial units and mixed-use buildings.
View pageBuy-to-let mortgages
Single properties, HMOs, limited company structures and portfolios.
View pageBridging vs Development Finance: Which Do You Need?
The real dividing line between a bridge and a development facility, how each is drawn down and priced, and which one your scheme needs.
Read the guideBridging loan calculator
Work out the gross loan, LTV, interest and every fee before you speak to anyone.
Open the calculatorTalk the deal through
Free deal review by a specialist. We will tell you what is achievable, what it is likely to cost and what the lender will want to see.
Amram Finance Ltd is a credit broker, not a lender. We do not lend our own money and we do not approve or issue loan offers.
Your property may be repossessed if you do not keep up repayments on a loan secured on it. Some forms of bridging finance and buy-to-let lending are not regulated by the Financial Conduct Authority.