Commercial to Residential Property Investment (C2R)

Previously it was a difficult task to convert a commercial property into residential homes, as there were certain restrictions in place. However, this changed in 2015 when new laws made converting these buildings a much easier prospect.

With our professional guidance in sourcing, purchasing and developing these commercial properties into fine residential dwellings, and successfully cash in on this fantastic opportunity!

The changes made to the General Permitted Development Order, or GPDO in 2015 gave developers more incentives and scope. These include being able to change a commercial building’s purposes to residential housing.

There are a few exceptions to these rules, such as:
Listed buildings
Designated areas of beauty
Buildings of scientific Interest
Buildings in conservation areas
Buildings that are situated in national parks
Buildings in safety hazard areas
Military explosive zones

Looking for a property to buy in Nottingham? But don’t let this deter you, as some of these examples can be converted, it just may need more due diligence work by us, together with full planning permission, and help from our panel of architects. It could also be necessary to complete the work to a specific set of standards and guidelines.

What is commercial to residential development?

Commercial to residential property is the act of turning commercial buildings into housing. The idea behind this activity is that people who work in the city (including students) should be able to live there too. This will reduce their daily commute which brings benefits both for the individual and society. It’s surprising then that not more has been done by local governments or anyone else to try and encourage this development. The reason it hasn’t yet become popular is because of uncertainties about how much money can be made by converting a commercial building into a living space, issues with regulations, costs associated with changing use, and other factors.

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Excellent return with the right commercial building, and expert guidance

Many people decide to buy buildings and turn them into the housing which they rent. This is a perfectly legal and very sensible idea especially given the high price of houses in the UK at the moment. For example, it would be possible to purchase an old building or office block and convert it into modern homes with the help of our experienced contractors and guidance. Upon competition, many clients who invest in these commercial properties prefer to rent them out as this provides them with regular returns. They can also be sold on at a later date for yet more money, especially if the building is situated in an area where houses are expensive.

What are the rules and regulations on turning a commercial building into residential property?

The rules and regulations that pertain to commercial buildings that have been turned into residential ones vary according to the plans that people have for the property and the kind of use they intend it for. However, most types of conversion can be carried out providing all necessary planning permission has been obtained beforehand and various checks and surveys carried out which prove no one will be at risk from being housed thereon. Some of the types of commercial buildings that can be turned into residential ones include abandoned factories, disused office blocks, and warehouses.

Commercial buildings are normally designed so as to suit the purposes they were created for rather than the needs of potential residents. Therefore their conversion will usually require structural changes such as reconfiguring rooms altogether so they are suitable for people to live in instead of work in. Their proximity to areas where people have been employed means that noise levels can also be an inconvenience when trying to relax at home.

The first type of commercial to residential property is a conversion, where a building that was originally a commercial building is converted into a house or flat. This can be done by demolishing internal walls and removing any partitions, work surfaces, etc from the kitchen area(s). In some cases, it may be possible to have completely different floors so each room has its own designated purpose, with kitchens on the floor above bedrooms for example. The main disadvantage of this sort of conversion is that it can cost more than building an entirely new property, but there are certain benefits including being able to plan your ideal layout without having to consider space constraints imposed by other factors such as existent plumbing or electrical systems.

Another reason why commercial-to-residential conversions are popular is due to how they provide a way for modernisation without resorting to demolishing buildings that may hold historic significance. By keeping the building and simply changing its use from business to residential, many older buildings have been saved from destruction at a time when the building of new homes is much more costly.

This option does come at a price, however, particularly if you are looking to live in an area that is not considered ‘at risk’ or one that has listed building status. As you will be converting the lower value office space into higher-end residential property, your costs can increase dramatically.

From an investment point of view, there are both advantages and disadvantages to commercial to residential conversions. The main disadvantage is that you need pre-approval from your Local Authority before any works can start on site because there are numerous rules and regulations regarding work carried out within areas deemed historically significant including restrictions on additions being made to houses in conservation areas which buildings have been converted from businesses too.

The rules and regulations on turning a commercial building into residential property will need to be carefully considered before you start this type of project. This is why our experience, advice and guidance is paramount to your success!

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Is it worth making a commercial to residential property investment?

There is no doubt that even though converting a commercial building into residential units is not an easy task, it can be done. Many investors are flocking to regions where they can purchase old buildings at low prices and convert them to modern homes with the help of experienced contractors. Those who have developed their own teams of contractors find themselves casting out high returns due to the high demand.

House prices have hit a new high in the UK, with the monthly rate of inflation hitting 1.7%. In order to accommodate everyone on the property ladder, it is becoming increasingly important for people to make some form of investment that ensures their future lifestyle and wellbeing.

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What are some other rules and regulations on turning a commercial building into residential property?

When planning permission has been granted for proposed conversions, it is possible to make use of permitted development rights (PDRs). This allows developers to convert offices or light industrial buildings without having to apply for planning permission provided certain conditions are met. They must also ensure that all building work complies with relevant Building Regulations. The main reasons why this type of conversion is attractive include:

• No planning permission is required, providing the building has been used as a commercial building for at least 2 years prior to conversion and has not been refurbished or extended in that time.

• The permitted development rights also allow a change of use from an office building to a shop with one dwelling, without having to apply for planning permission.

• There are no imposed time limits on how long the change of use can last e.g. if it is agreed that it will be for good then you do not have to renew the planning agreement every two years as you would under converted space agreements

The main reasons why this type of conversion is attractive include: *No planning permission is required, providing that the building had been used for office purposes on or before 1 October 2012 and has not been extended, refurbished or altered in that time.

• No time limit is placed on how long the change of use can last, provided it is considered a permanent arrangement.

• There are no restrictions on who uses the space within a converted building, which means that you could be sharing with other businesses e.g. retail/office/residential property etc… This adds value to your property as any business occupying commercial space would pay premium rates compared to non-commercial occupancy rates.

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