Property Law Solicitors
Converting Commercial Property into Residential
Attwells Solicitors specialises in property law. As a result, we are your perfect legal situation for buying and converting commercial property into residential properties.
Why buy commercial property to convert it into residential?
As demand for housing continues to grow and the use of commercial spaces evolves, many property developers are exploring the option of converting commercial properties into residential homes. This has become even more advantageous following the recent budget, with Stamp Duty remaining lower for commercial property purchases.
As a result, we are seeing a rise in matters that require a blend of development expertise, commercial law, and conveyancing services. As Attwells are experts in property law, you can rest assured that our lawyers will support you from the initial purchase right through to the sale and completion.
In addition, we offer the following service promises:
How long does commercial property conveyancing take?
According to an article published by Rightmove in 2022, the conveyancing process typically takes 150 days, from the point a property is sold subject to contract until the move-in date. However, our median conveyancing time in 2022 was 126 days. It is worth noting that commercial property purchases may take longer due to their added complexities.
By instructing Attwells, you could benefit from a faster and more efficient purchase process.
Please watch our YouTube video for more information about how the changes to Stamp Duty benefit commercial property purchasing.
Why Convert Commercial Property into Residential Space?
Unused or underutilised commercial properties, such as offices, shops, and industrial units, can be transformed into valuable residential spaces. The benefits of this transformation include:
- Lower Stamp Duty: You will only pay 3% SDLT on your commercial property purchase.
- Increased Housing Supply: Conversion projects help address our ongoing housing shortage.
- Enhanced Investment Potential: Residential properties typically offer strong rental yields and potential for appreciation.
- Eased Planning Regulations: Recent changes to planning law have introduced flexible policies to support commercial-to-residential conversions.
The Steps of Converting Commercial Property
- Feasibility Assessment
Begin by assessing whether the property is suitable for residential conversion. This includes evaluating structural integrity, potential costs, local housing demand, and overall profitability. - Permitted Development Rights (PDRs)
Commmercial-to-residential conversions are streamlined under Permitted Development Rights (PDRs), which allow property owners to bypass full planning applications. For example, some Class E commercial properties (such as retail and offices) may be converted into Class C3 (residential) under these rights. Attwells Solicitors can confirm if your property qualifies for PDRs and guide you through the PDR application process - Building Regulations Compliance
Converting a commercial property into residential use requires compliance with Building Regulations to ensure safety, accessibility, and suitability for habitation. These regulations cover areas such as fire safety, sound insulation, and energy efficiency. - Finance and Mortgage Structuring
Financing a conversion project is often more complex than a standard residential mortgage. Attwells Solicitors can help you with the legal aspects of development finance or bridging loans. - Title Deed Review and Ownership Structure
Many commercial properties contain specific restrictions, such as covenants, which may affect conversion. Attwells Solicitors will conduct a thorough review of title deeds and property ownership to ensure no legal restrictions impede your plans.
Understanding Planning Rules and Change of Use Classes
The Government has recently updated its use classes to facilitate conversions from commercial to residential properties. Changes to planning laws now allow more flexibility under Class E (commercial, business, and service) and Class MA, making it easier to transition certain properties to residential use. However, these regulations are subject to local authority interpretations, particularly for properties in Article 4 areas where planning permissions are more restricted. Attwells Solicitors provides local expertise to help you navigate these nuances.
Who will do my work?
Our commercial property team consists of paralegals with one to seven years of experience, solicitors with at least three years of experience, and a commercial law Practitioner with over twenty years of experience.
