The new Permitted Development (PD) rights, which took effect on 1 August 2021, enable the expedited grant of planning permission of underused commercial buildings for residential use. Councils will be empowered to review prior approval applications only on the basis of particular criteria, such as floods, noise from commercial establishments, and appropriate lighting in habitable areas. Councils may also examine site-specific problems such as the impact of the loss of a health service and, in conservation zones, the impact of the loss of a ground floor Class E use. The PD rights apply to Conservation Areas but not to other types of protected land designated as Article 2(3), such as Listed Buildings, National Parks, or Areas Of Outstanding Natural Beauty.
In this article, change of use from commercial to residential 2021, we take a look at the process involved.
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What are the stages involved in converting a property from commercial to residential?
- Consult an architect or your local council.
- Conduct a survey if no current drawings exist.
- Appoint an architect to create your proposed designs and assemble your planning package.
- If appropriate, submit a pre-application. This is often the procedure employed for larger projects.
- Submit a full planning application, a prior approval or a lawful development certificate application.
What are Use Classes ?
The following are some broad examples of Use Classes:
- Shops and other retail establishments are classified as class A
- Offices, factories, workshops, and warehouses are classified as Class B
- Residential institutions, hotels, and hostels are classified as Class C
- Places of assembly, buildings used for recreation and non-residential are classified as Class D
These categories are further divided into subclasses.
For instance, class A1 contains salons and dry cleaners, whereas class A2 includes financial services such as banks and estate agencies.
Class B1 refers to offices suitable for residential neighbourhoods, such as those engaged in research and development, whereas class B2 establishments may engage in light industrial activities.
Residential property is classified as C3. The new Permitted Development right to allow the change of use in England from any use within Class E (Commercial, Business and Service Use Class) to residential use (Class C3) is known as ‘Class MA’.
Previously, permitted development rights to create new homes include Class M for ground-floor shops, Class G for the rooms above shops, betting shops and payday lenders and Class O for offices.
Is it Possible to Convert Any Shop to Residential Use?
One thing that is different from both Class M and Class O is that these new permitted development right regulations demand that the property be empty for three months prior to making an application.
Another disadvantage is that you will not be able to use permitted development rights to add additional storeys to the building, as some Class O conversions allow. A significant change from the previous rules is that shops or offices have to have been in that use since 2013. They simply need to have spent two years in Class E (or one of the old use classes that was merged into Class E) under Class MA.
You should be aware that you can alter only a portion of the structure, not the entire structure, such as leaving the ground level commercial and converting the higher floors to residential usage.
Additionally, under recent guidelines that apply to all new dwellings constructed through permitted development, each habitable room must receive natural light, and flats or houses must fulfil minimum space requirements.
What are the costs that are involved in a typical conversion?
You will incur the same buying costs as with a residential home. This includes stamp duty (which, for commercial property, this begins at £150,000)
If you are developing with the intention of living in the new conversion and you intend to remain in your present home during construction, you will avoid paying greater stamp duty on the acquisition of your ‘second home,’ as non-residential and mixed-use properties are exempt from stamp duty.
Additionally, you’ll need to pay for solicitor’s fees, local authority searches, and an expert building survey of the commercial property’s structure. The cost of the conversion will vary according to the scope of the job, but it might range from tens of thousands of pounds to several hundred thousand pounds.
You may be required to pay for soundproofing and thermal insulation improvements, as the regulations governing this vary between commercial and residential properties. Additionally, budget for any necessary modifications to drainage, water, and electrical infrastructure that are not currently designed for residential use.
Finally, be prepared for hidden costly issues that become apparent only after the building is stripped back.
How we can help
We have a proven track-record of helping clients with the legal ramifications of changing a property from commercial to residential use. We are a multidisciplinary firm and have all the expertise inhouse to satisfy the most exacting requirements of our clients. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact Our Commercial Property Solicitors
It is important for you to be well informed about the issues and possible implications of developing a commercial building. However, expert legal support is crucial in terms of ensuring a positive outcome to your agreement.
To speak to a member of our New Enquiries Team today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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