Glossary definition
Change of Use
The process of converting a property from one use class to another, which may require planning permission or may be achievable under permitted development rights. Since the use class reforms of September 2020, many changes within the new Class E (commercial, business, and service) are permitted without an application, while changes to residential (Class C3) from Class E require prior approval under Class MA.
Definition
The process of converting a property from one use class to another, which may require planning permission or may be achievable under permitted development rights. Since the use class reforms of September 2020, many changes within the new Class E (commercial, business, and service) are permitted without an application, while changes to residential (Class C3) from Class E require prior approval under Class MA. Lenders will assess planning risk carefully on change-of-use schemes, particularly where Article 4 directions are in force.
See also
Closely related terms.
Use Class
The classification system under the Town and Country Planning (Use Classes) Order that groups similar land and property uses together.
Permitted Development Rights
Automatic planning permissions granted by Parliament through the General Permitted Development Order, allowing certain building works and changes of use without needing to apply for planning permission from the local authority.
Prior Approval
A lighter-touch planning process required for certain types of permitted development, where the local authority assesses specific matters such as transport, flooding, contamination, and noise impact.
Article 4 Direction
A direction made by a local planning authority that withdraws specific permitted development rights in a defined area.
Further reading
Guides that touch this term.
Guide
Legal Due Diligence in Development Finance: What Solicitors Check
Legal due diligence is the backbone of every development finance transaction. This guide explains what solicitors investigate, common issues that delay completions, and how to prepare your legal pack.
9 min read readReadGuide
How Does Development Finance Work? A Complete Guide for UK Developers
A ground-up guide to how development finance is structured in the UK, covering loan mechanics, drawdown schedules, monitoring surveyors, and what lenders look for in your application.
5 min read readReadGuide
Using a Bridging Loan to Buy at Auction: A Step-by-Step Guide
Buying at auction requires completing within 28 days. Bridging loans are the go-to funding solution. This guide covers how to get pre-approved, what it costs, and how to plan your exit.
4 min read readRead
Where it shows up
Finance products using this term.
Service
Bridging Loans
Short-term finance for acquisitions, auction purchases and time-sensitive deals.
From 0.55% p.m. · Up to 75% LTVReadService
Development Finance
Senior debt funding for ground-up residential and commercial developments.
From 6.5% p.a. · Up to 65-70% LTGDVReadService
Refurbishment Finance
Funding for light and heavy refurbishment projects including conversions.
From 0.65% p.m. · Up to 75% LTVRead
Ready to apply
Knowing the term is one thing.
Getting it on your term sheet is ours.
Send us the outline. We come back with indicative pricing from the right lenders inside a working day.