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Welcome to Advocate Finance, your trusted specialists in providing finance for commercial property conversion projects.
Whether you are an experienced property developer or exploring your first project, our team offers tailored solutions to help you convert commercial spaces into modern, liveable residential properties.
We guide you through every step of the process, from initial financing to long-term mortgage options post-conversion.
A wide variety of commercial properties can be eligible for financing when converting into residential units. These include:
Our team specialises in assessing the potential of each project and can guide you through securing the right finance for your commercial-to-residential conversion.
Yes, once the conversion is complete, we can help you secure a long-term mortgage based on the newly established value of the residential property. Following the refurbishment, we work closely with lenders to ensure the post-conversion valuation reflects the increased market value of your property.
With this updated valuation, we can arrange a competitive mortgage that not only meets your repayment needs but also allows you to release any equity that has been built up during the conversion process.
Valuation plays a crucial role in determining the success of any commercial-to-residential conversion project. Accurate and up-to-date valuations are essential to secure the right amount of financing at every stage—from the initial purchase of the commercial property to the post-conversion mortgage.
A professional valuation not only impacts your loan-to-value (LTV) ratio but also influences how much equity can be released once the conversion is complete. Working with experienced valuers familiar with both the commercial and residential property markets is key to maximising your investment potential.
Advantages of Converting a Commercial Property | Disadvantages of Converting a Commercial Property |
Increased Property Value: Converting a commercial property into residential can significantly increase its value, especially if the property is located in an area with high demand for housing. | High Initial Costs: Converting a commercial property into residential often requires a significant upfront investment for refurbishment and planning approval. |
Higher Rental Yields: Residential properties typically generate higher rental yields compared to commercial spaces, making this an attractive investment option. | Uncertainty in Valuation: There can be uncertainty regarding the post-conversion value of the property, which may impact the amount of financing available through refinancing. |
Planning Flexibility: With recent changes in planning regulations, converting commercial properties into residential has become easier in many areas, reducing the red tape involved in such projects. | Time-Consuming: Conversions can be a lengthy process, from obtaining planning permission to completing the refurbishment, which may delay rental income or sale returns. |
Capital Growth: The potential for capital appreciation is higher after converting a property, especially in areas where residential demand is rising faster than commercial demand. | Market Risks: Fluctuations in the housing market can affect the profitability of a conversion project, particularly if property values or demand for residential units fall. |
Unlocking New Development Opportunities: Many underused or vacant commercial properties in prime locations can be repurposed to meet housing demands, offering an excellent opportunity for growth. |
Expertise and Experience:
How Can YOU Benefit from Our Advice?
Competitive Fee Structure
Comprehensive Range of Services
Some lenders have flexible solutions that allow you to acquire the property with bridging loans and then apply for planning.
Once planning is granted, the lender provides a new loan that includes the facility for the work to be carried out. This saves time and cost for having to change lenders and can be quickly implemented.
Yes – We have lenders that can consider loans for all project types, from shops to flats, churches to houses, and houses to HMO’s.
There is no limit to the scope as long as the business case stands up and there is a clear exit for selling the property or refinancing onto a mortgage, in order to repay the conversion loan.
While commercial to residential conversions fall under the new permitted development rights, there are certain aspects to consider.
Following the changes to the permitted development rights in 2021, a new class of commercial property was created – Class MA.
Class MA allows buildings within the Use Class E (Commercial, Business & Service) to be converted into dwellings.
While these properties potentially fall under the permitted development rights, there are certain criteria points that need to be met.
Our advisers offer a FREE consultation, so please give us a call or use the “Get in Touch With Us” form at the end of this page.
Our expert team of mortgage brokers are here to guide you through every stage of the process.
Important Information
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
We are a credit broker not a lender.
Advocate Finance Ltd, registered at 55 Crown Street Brentwood, Essex CM14 4BD. Company Register number is 05579380. Authorised and Regulated by the Financial Conduct Authority. Our FCA registration number is 592830.
You can check via www.fca.org
We are registered with the ICO, Z1654205 and you can check via www.ico.org.uk.
We conduct both regulated and unregulated business and therefore not all products provided through us are regulated by the Financial Conduct Authority. We source mortgages and loans from a panel of lenders.
We may receive a commission that will vary depending on the lender, product, the amount borrowed or other permissible factors.
Advocate Finance is a mortgage and finance brokerage firm that specializes in securing loans and mortgages for various types of properties, including single properties, large portfolios, commercial sites, and development projects. They assist clients regardless of credit history, circumstances, or legal ownership, aiming to provide tailored financing solutions