Finance for Permitted Development
The finance you need to fund your permitted development conversionSpeak to one of our experts020 4525 5312
Table of Contents
To finance a permitted development project, you'll need a comprehensive understanding of the permitted development rights changes that took place in 2020, as well as the upcoming amendments to the regulations in 2021.
At Rangewell, we can provide expertise and support to help you secure finance for your permitted development project. Gain access to finance and get your permitted development project off the ground today.
Permitted development rights allow you to make certain changes to your property without the need to submit a full planning application to your local authority. Understanding permitted development rights is the first step towards converting your property without the red tape or hassle that comes with a planning application. Once you've determined whether your project qualifies, it's time to apply for appropriate finance to get your permitted development work off the ground.
Whether you intend to extend your current home or are exploring the possibilities of a new property, Rangewell can help you find the best possible permitted development funding option for you and your circumstances.
Types of Permitted Development
Permitted development rights cover certain types of work that do not require planning permission from the local planning authorities. While it is often a very useful way for both homeowners and property developers to avoid the complex planning process, permitted development is not generally relevant for large-scale development as it is limited by maximum floor space and only applies to certain use classes and criteria. Rather, permitted development rights generally refer to smaller-scale projects such as office to flat conversions, disused retail premises to homes and personal loft and garage conversions.
The government categorises the types of permitted development projects into eight classes, some of which are more common than others.
The permitted development classes go from A-H and cover projects such as enlargement, improvement or alteration (Class A) through to porches (Class D) and even chimney work (Class G). To get the most up-to-date information about the planning process, permitted development classes and what falls under each category, be sure to check the latest government guidance on permitted development at gov.uk.
The most common types of permitted development projects include loft and garage conversions, whereby the constraints of the project do not exceed a certain size. As well as the construction work itself permitted development rights also tend to cover the Change of Use for a garage or loft conversion that is becoming a living space, for example.
To determine whether your project is permitted development or if you need a grant of planning permission, read our full guide to Permitted Development, check out the Planning Portal or ask your local planning authorities.
Residential permitted development
Whether you're looking to convert your garage into an income-generating living space, build a personal loft extension or you're simply researching for a project in the future, then you'll need to understand your permitted development rights fully for your residential property project.
For residential properties, permitted development covers a wide range of potential works, including:
- Side and rear extensions and general alterations such as new windows and doors, subject to size constraints and, in larger cases, neighbour consultation.
- Conversion projects such as loft conversions and/or placement of dormer windows, subject to size constraints
- Installation or alteration of roofs that enlarge the house, subject to size constraints
- Erection of a porch outside and external door
- Provision of buildings and other developments within the curtilage of the house
- Provision of driveways and garden paths
- Installation, alteration or replacement of chimney, flue or soil or vent pipe
- Installation, alteration or replacement of satellite dishes
So, as you can see, permitted development covers a large variety of different works that do not require planning permission. There are a lot of considerations within each class, including exclusions for Grade-II listed buildings, for example.
With the rules changing over recent years, even experienced developers have to double-check whether a project qualifies for permitted development rights or not, so don't hesitate to check out our full guide or check with your local planning authority before getting started. If you're still unsure or want to avoid any neighbour conflict, it's worth applying for a lawful development certificate (LDC) as proof that your property improvements are lawful, as you will not have the same documentation that comes with planning consent from a formal planning application.
Whatever your residential property improvement plans, choose Rangewell to help find the best finance options to suit your budget and circumstances. Get in touch today to find out more about permitted development finance options for your residential project and maximise your income with new opportunities. We'll help discuss ideas such as loft or garage conversions to accommodate additional tenants or increase your market competitiveness.
Permitted development restrictions and exclusions
While the government's permitted development rights cover a wide basis of projects, there are still some limitations and even exclusions to consider before applying for permitted development finance.
Permitted development restrictions apply to properties in "designated areas", this includes:
- a Conservation Area
- a National Park
- an Area of Outstanding Natural Beauty
- a World Heritage Site or
- the Norfolk or Suffolk Broads.
If your property is located in one of these areas, you will need planning permission - even if the project itself, e.g. a loft conversation, falls under permitted development rights. If you're not sure whether your project is excluded or restricted under permitted development, we recommend contacting your local planning authority before starting any work.
Once you've determined your project qualifies for permitted development, it's time to think about finance. Contact the expert team at Rangewell today to kick off your project and discover the best finance options for your home improvements.
Permitted development for commercial properties
Now we've explored permitted development potential for residential properties and looked closer at the exceptions to the regulations, it's time to explore the subject of commercial property. As business premises can differ vastly, permitted development for commercial property is a much more complex topic than that of a simply loft or garage conversion to your residential property.
Permitted development rights do cover some commercial buildings, however, it truly depends on the property's use class and the plans involved. For example, you may be able to carry out a significant project to one class of building without planning permission, but a simple Change of Use for others will require significant planning applications.
Recent updates to permitted development have made it easier for investors to convert disused property into residential opportunities. While there is now a maximum size limitation on office conversions which limits the era of large-scale offices transforming into blocks of flats, there are many new opportunities thanks to PDR being extended to high street buildings such as retail premises and restaurants. Provided those commercial buildings meet some key criteria such as being disused for 3 months, they may fall under PDR and allow an investor to convert into a lucrative rental property without seeking permission.
Click here to visit our Permitted Development Investment Guide, which covers everything you need to know about commercial property use classes and how PDR applies.
The changes to Permitted Development in 2021 has shaped a new future for investors, which you can learn more about in the guide above or summarised below:
- The era of large-scale office building conversions is now hampered by a size limit of 1,500sqm. However, you can still pursue the project under traditional planning measures.
- Class E properties, which have been classified as E for at least two years and have stood disused for three months, can be converted to residential use under PDR.
- New residential properties that come from permitted development projects must conform to certain minimum space and natural light standards.
- Other Class E properties such as nurseries, gyms etc can be converted into hospitality opportunities in high street locations provided they fall under PDR and are exempt from Article 4.
- Article 4 is still in effect - meaning local authorities have the right to withdraw PDR from certain areas in towns and cities. Check for Article 4 Direction in your project's area.
So, if you're considering a conversion or extension for your commercial property and need funding, you're in the right place. At Rangewell, we specialise in finding the right finance for your project, so contact our team of experts today.
Permitted development for outbuildings
We've covered permitted development rights for residential and commercial properties, as well as restrictions and exclusions to consider - but what about outbuildings?
Depending on the location of your property and the size of the land it is on, your outbuilding project may be covered under permitted development and, as a result, not require planning permission.
While many of these conversions will be for personal use, there are still commercial benefits for investors who perhaps have disused outbuildings in a letting property that could be converted. There are a few considerations, of course, including:
- Outbuildings may only be single-storey and no higher than 2.5m
- Outbuildings may not sit forward of the principal elevation
- Outbuildings developed under permitted development cannot be used for residential accommodation, so if you are looking to build an extra bedroom or an annexe for family and friends then you’ll need to speak to your local planning authority before breaking ground.
Remember: if you're not sure about whether your project is covered under permitted development, or you need proof for developers or neighbours, you can always apply for a lawful development certificate from your local planning authority.
So, if your outbuilding project falls under permitted development, then you’ll need the financial support to turn your dreams into a reality. Expand your property's amenities to increase market competitiveness with Rangewell, and find the right finance option to suit you today.
Permitted development finance from Rangewell
At Rangewell, we work with specialist lenders across the whole market to source the very best finance solutions to suit your individual needs. With us, it’s not just generic finance, it’s a bespoke search that takes into account your plans, circumstances and budget, so you can get that permitted development project off the ground and start transforming your home today.
Even if your project requires planning permission, and you have secured the permission to get going, we can help with finance for property developers, including Property Development Finance and even Land Purchase Finance if you’re really starting from scratch.
Whatever your property development plans, we’re here to help find the right finance for you - be it over a long period of time, or just a short-term finance product to get you on your way. Contact our team of experts today to get started.
Last update: 30 September 2022
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