Glossary definition
Commercial to Residential
The conversion of commercial premises, such as offices, retail units, or light industrial buildings, into residential dwellings. Since 2013, Class MA (formerly Class O) of the General Permitted Development Order has allowed office-to-residential conversions without full planning permission, subject to prior approval.
Definition
The conversion of commercial premises, such as offices, retail units, or light industrial buildings, into residential dwellings. Since 2013, Class MA (formerly Class O) of the General Permitted Development Order has allowed office-to-residential conversions without full planning permission, subject to prior approval. Commercial-to-residential conversions are popular with developers because they can reduce planning risk, though lenders will scrutinise the condition of the existing building and the cost of conversion works.
See also
Closely related terms.
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.
Use Class
The classification system under the Town and Country Planning (Use Classes) Order that groups similar land and property uses together.
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
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
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
Development Finance vs Bridging Loans: Which Do You Need?
Two of the most common short-term property finance products, but they serve very different purposes. We break down the rates, terms, and scenarios where each makes sense.
8 min read readRead
Where it shows up
Finance products using this term.
Service
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% LTVReadService
Bridging Loans
Short-term finance for acquisitions, auction purchases and time-sensitive deals.
From 0.55% p.m. · Up to 75% LTVRead
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