Remortgage a Barn Conversion

Why Barn Conversions Require Special Consideration

Barn conversions differ from standard residential properties in several important ways, and these differences can affect how lenders assess them for mortgage purposes. Understanding why lenders treat barn conversions differently will help you prepare a stronger application.

Original construction

Barns were built for agricultural purposes, not for human habitation. Their original construction often involves materials and methods that lenders classify as non-standard. Stone walls, timber frames, steel portal frames, and corrugated roofing are all common in barn conversions but are not what most lenders consider standard residential construction.

Conversion quality varies enormously

The quality of barn conversions can range from exceptional architect-designed projects to more basic conversions that may not fully meet modern building standards. Lenders need to be confident that the conversion has been carried out to a standard that ensures the property is safe, habitable, and will maintain its value over the mortgage term.

Rural and isolated locations

By their nature, barns tend to be located in rural areas, sometimes in quite isolated positions. While many people find this appealing, lenders can be cautious about properties in remote locations because they may be harder to sell if the lender needs to repossess. This concern about marketability can affect the terms offered.

Agricultural ties and restrictions

Some barn conversions, particularly those in green belt areas or where planning permission was granted on specific grounds, may come with agricultural occupancy conditions or other planning restrictions. These conditions can significantly limit who can live in the property and consequently affect its market value and mortgageability.

Listed building status

Many older barns, particularly those of architectural or historical significance, are listed buildings. Listed status restricts what alterations can be made to the property, which can affect maintenance costs and future development potential. Some lenders are cautious about lending on listed buildings for these reasons.

Unique nature and valuation challenges

Every barn conversion is different, which can make accurate valuation challenging. Unlike a standard three-bedroom semi-detached house, where there are plenty of comparable sales data points, a barn conversion may have few or no direct comparables in the local area. This can lead to valuation uncertainty, which lenders do not favour.

What Lenders Look For in a Barn Conversion

Understanding the specific criteria that lenders apply to barn conversions can help you prepare your application and avoid potential pitfalls. While each lender has its own policies, the following factors are commonly assessed.

Building regulations compliance

This is one of the most important factors. Lenders want to see a building regulations completion certificate confirming that the conversion work was inspected and approved by the local authority's building control department or an approved inspector. This certificate confirms that the conversion meets standards for structural integrity, fire safety, insulation, ventilation, and other essential requirements.

Planning permission

The barn should have the necessary planning permission for change of use from agricultural to residential. Some barn conversions are carried out under Class Q permitted development rights, which allow agricultural buildings to be converted to residential use without full planning permission, subject to certain conditions. Lenders will want to see evidence of the relevant consent.

Construction quality and materials

The surveyor will assess the construction of the barn and the quality of the conversion work. They will look at the structural soundness of the original building, the quality of any new construction (such as internal walls, floors, and roof insulation), and the standard of services including plumbing, heating, and electrical systems.

Condition and maintenance

The current condition of the property matters. Barn conversions can require specialist maintenance, particularly where original features such as exposed timber beams, stone walls, or large areas of glazing are involved. The surveyor will assess the property's condition and note any areas requiring attention.

Access and location

Lenders consider the property's accessibility. A barn conversion accessed via a long unmade track may raise concerns about maintenance responsibilities and emergency access. Properties in areas prone to flooding may also face additional scrutiny. The general location and proximity to amenities, schools, and transport links are also considered.

No agricultural ties

Lenders will check whether there are any agricultural occupancy conditions attached to the planning permission. These conditions restrict occupation to people employed or last employed in agriculture, forestry, or a related rural enterprise. Properties with agricultural ties are significantly harder to mortgage because their market is severely restricted.

Habitable and complete

The conversion must be fully complete and habitable. Lenders will not typically offer a standard residential mortgage on a property that is mid-conversion or requires significant further work to make it suitable for living in. A self-build or renovation mortgage may be more appropriate in those circumstances.

Class Q Permitted Development Barn Conversions

Since 2014, Class Q of the Town and Country Planning (General Permitted Development) Order has allowed certain agricultural buildings to be converted to residential use without full planning permission. This has led to a significant increase in barn conversions across England. Understanding how Class Q conversions are viewed by lenders is important if your property was converted under these rights.

What Class Q allows

Class Q permits the change of use of an agricultural building and any land within its curtilage to a use falling within Class C3 (dwellinghouses). It allows for reasonably necessary building operations to convert the building, including the installation of windows, doors, roofs, exterior walls, services, and structural works to ensure the building is reasonably capable of functioning as a dwelling.

However, Class Q does not permit the complete demolition and rebuild of a structure. The building must be capable of conversion without major structural alterations. If the building requires substantial reconstruction, full planning permission will usually be needed.

Conditions and limitations

Class Q conversions are subject to several conditions. The maximum number of dwellings that can be created is five, with a maximum combined floor space of 865 square metres. A prior approval application must be submitted to the local planning authority, which will consider matters such as transport, flooding, contamination, noise, and the impact on the landscape.

Lender attitudes to Class Q conversions

Most mainstream lenders will consider Class Q barn conversions, provided the conversion has been properly carried out and all necessary approvals are in place. The key documents lenders expect to see include:

• The prior approval notice from the local planning authority.
• A building regulations completion certificate.
• Evidence that the conversion was carried out within the scope of the permitted development rights (not exceeding the parameters of Class Q).

Some lenders may be more cautious about Class Q conversions that pushed the boundaries of what is permitted, or where the quality of the conversion is questionable. A detailed assessment by the valuation surveyor will determine whether the lender is comfortable with the specific property.

Potential issues with Class Q conversions

One area of concern is where a Class Q conversion has effectively resulted in a new build rather than a genuine conversion of an existing structure. If the original building was largely demolished and rebuilt, the work may have exceeded what Class Q permits, which could create legal and planning issues. Lenders will want assurance that the conversion was lawful.

Valuation and Marketability Considerations

Valuing a barn conversion can be more complex than valuing a standard residential property. The unique nature of each conversion, combined with the rural locations where they are typically found, can make it challenging for surveyors to arrive at an accurate figure. Understanding the valuation process can help you prepare and potentially avoid disappointment.

Finding comparable evidence

The valuation surveyor will look for comparable sales of similar properties in the area. For standard houses, there is usually plenty of comparable evidence, but for barn conversions, direct comparables can be scarce. The surveyor may need to look at a wider geographical area or consider sales of other types of converted properties to arrive at a valuation.

Factors that enhance value

Certain features can positively influence the valuation of a barn conversion. These include a high-quality conversion with attention to detail, retention of characterful original features such as exposed beams and vaulted ceilings, good energy efficiency and modern amenities, generous plot size with well-maintained grounds, good road access and proximity to local amenities, and desirable views or an attractive rural setting.

Factors that reduce value

Conversely, some factors can negatively affect the valuation. These include poor-quality conversion work, missing building regulations or planning documentation, a very isolated location with poor access, agricultural ties or occupancy conditions, extensive maintenance requirements, and proximity to working farms with associated noise, odour, or traffic.

Marketability assessment

Beyond the numeric valuation, the surveyor will also assess the property's marketability. This is essentially a judgment about how easy the property would be to sell on the open market within a reasonable timeframe. Lenders use this assessment to gauge the risk of being unable to recover their money if they need to repossess.

A barn conversion in a popular rural area with good access, no agricultural ties, and a well-executed conversion will typically score well on marketability. A more remote property with limited access, unusual features, or restrictions may score less favourably.

What to do if the valuation is lower than expected

If the valuation comes in lower than you expected, you have several options. You can accept the lower valuation and adjust your borrowing accordingly. You can provide additional comparable evidence to the lender and request a revaluation. You can try a different lender whose surveyor may take a different view. Your mortgage broker can advise on the best approach for your specific situation.

Listed Barn Conversions and Heritage Considerations

Many barns in the UK are listed buildings, which means they are recognised as being of special architectural or historic interest and are protected by law. If your barn conversion is a listed building, there are additional considerations that can affect your remortgage.

What listing means for your property

Listed building status means that you need listed building consent (in addition to any planning permission) before carrying out any works that would affect the building's character as a building of special architectural or historic interest. This includes both internal and external alterations, even minor ones that would not normally require planning permission.

The listing applies to the whole building, including the interior, any structures or objects fixed to the building, and any structures within the curtilage that were built before 1948.

How listing affects remortgaging

Some lenders are cautious about listed buildings for several reasons. The cost of maintenance and repairs can be higher because specialist materials and techniques may be required. The restrictions on alterations can limit the owner's ability to adapt the property. Future repair costs are less predictable, and there may be obligations to maintain the building in a specific way.

However, many lenders are happy to lend on listed barn conversions, particularly those in good condition and with evidence of proper maintenance. The key is to demonstrate that the property is well cared for and that there are no outstanding enforcement notices or urgent repair requirements.

Documentation for listed barns

If your barn conversion is listed, you should have the following documentation available for the remortgage process. The listed building consent for the conversion works, showing that the conversion was authorised by the local planning authority. Any subsequent listed building consents for further works carried out since the conversion. Evidence that all conditions attached to the consents have been complied with. Details of any heritage-specific maintenance that has been carried out.

Insurance considerations

Listed barn conversions may require specialist buildings insurance that covers the cost of repair using appropriate materials and methods. Standard buildings insurance may not provide adequate cover for the replacement of original features or the use of heritage-appropriate materials. Your lender will want to see that the property is adequately insured, so ensure your policy reflects the listed nature of the building.

Despite these additional considerations, listed barn conversions are among the most sought-after property types in the UK. Their character and heritage appeal can command premium prices, and many lenders are experienced in assessing them. A specialist broker can guide you to the right lender for your listed barn conversion.

Practical Tips for a Successful Barn Conversion Remortgage

Drawing on the key factors discussed throughout this guide, here are practical steps you can take to ensure the best possible outcome when remortgaging your barn conversion.

Compile your documentation early

Gather all relevant documents before you start the remortgage process. This includes the building regulations completion certificate, planning permission or prior approval notice, any listed building consents, architect's drawings, structural engineer's reports, and any warranties or guarantees relating to the conversion work. Having everything ready can significantly speed up the process.

Check for agricultural ties

Review your planning permission carefully to ensure there are no agricultural occupancy conditions. If there are, seek specialist advice about whether these can be removed. An agricultural tie can dramatically reduce both the property's value and the number of lenders willing to consider it.

Maintain the property impeccably

The condition of your barn conversion will be closely scrutinised by the valuation surveyor. Address any maintenance issues before the survey, paying particular attention to the roof, external walls, timber elements, and any original features. A well-maintained barn conversion will receive a more favourable assessment.

Ensure adequate access

If your barn conversion is accessed via a private track or lane, ensure it is in good repair. The surveyor will note the access arrangements, and poor access can affect the property's perceived marketability. If there are shared access arrangements with neighbouring properties, ensure these are properly documented.

Choose the right broker

A mortgage broker with experience in rural and non-standard properties is essential. They will know which lenders view barn conversions favourably, what documentation to provide, and how to present the property in the best light. Their expertise can save you considerable time and potentially secure better rates.

Prepare for the valuation

When the valuation surveyor visits, have copies of all relevant documents available. If you are aware of comparable sales of similar properties, make a note of them. Ensure the property is clean, tidy, and shows well. First impressions matter, and a property that presents well will create a more positive impression.

Be realistic about value

Barn conversions are unique properties, and their values can be subjective. Be prepared for the valuation to come in differently from what online estimates might suggest. If you are concerned about valuation, discuss this with your broker beforehand so they can advise on the best approach and potentially recommend lenders who use surveyors with rural property experience.

Consider the timing

Start the remortgage process well in advance of your current deal expiring, ideally six months ahead. This allows time to address any issues that arise and ensures you do not end up on your lender's standard variable rate while complications are being resolved.