Planning routes for barn conversions
In England, many agricultural buildings can be converted to homes under the Class Q permitted development right, subject to prior approval from the local authority and limits on the number and size of homes. Prior approval covers matters such as transport, noise, flooding, contamination, and whether the location and design make the change practical.
Other conversions need full planning permission, particularly where the building is listed, in a protected area or outside the scope of permitted development. Listed barns also need listed building consent for the works.
Lenders want to see the consent in place, any conditions that must be discharged before work starts, and that the proposed scheme matches what has been approved. Some permitted development rights are tied to the building being largely capable of conversion without rebuilding, so a structural engineer's report is important.
Why lenders are selective
Barn conversions carry risks that standard schemes do not. The existing structure may hide defects, such as rotten timbers or poor foundations, that only appear once work starts. Rural sites can have long access tracks, private drainage and no mains gas. Finished homes in remote locations can take longer to sell, and some mortgage lenders are cautious about unusual construction.
For these reasons, several bridging and development lenders exclude barn conversions or agricultural property altogether. On our panel, a small number of development lenders state that they consider barn conversions, usually for experienced developers or with a strong professional team. Showing that you have budgeted for surprises, with a realistic contingency, helps.
Surveys, ecology and services
Barns are often home to bats, barn owls and other protected species. Ecology surveys are commonly required as part of planning, and works may need to be timed around breeding or hibernation seasons, which can affect the programme a lender will see.
A strong application usually includes:
- A structural engineer's report on the existing frame and foundations
- Ecology surveys and any licences needed
- Details of access, water, electricity and drainage, with costs for new connections or a treatment plant
- A cost plan with a contingency, and a contractor experienced in conversions
- Arrangements for a structural warranty or professional consultant's certificate
Funding structure and exit
Development lenders typically advance part of the purchase price on day one and fund the conversion in stages as work is inspected. The total loan is limited by a percentage of the gross development value and of total costs, so you will normally need to contribute some of the costs yourself.
The exit is usually the sale of the finished home or homes, or a refinance if you plan to keep them. A development exit bridge can also repay the development loan if the sale takes longer than expected. We compare lenders that consider barn conversions and approach those that fit with a clear case. Instant Quotes gives indicative figures as a starting point, and final terms depend on each lender's valuation, monitoring surveyor and checks.
Converting a barn to live in yourself
If the borrower is an individual or the trustees of a trust, and the finished home will be lived in by you or a close family member, the loan is usually a regulated mortgage contract with additional protections. We will tell you at the outset if that applies and how your case will be handled.
Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
