Remortgage a Converted Property

What Counts as a Converted Property?

A converted property is any building that was originally constructed for a non-residential purpose and has since been converted into a dwelling. The UK has a rich history of property conversion, and there is a wide variety of building types that have been successfully transformed into homes.

Common types of converted properties include:

• Barn conversions — Agricultural barns converted into residential homes, particularly popular in rural areas across England and Wales.
• Chapel and church conversions — Former places of worship that have been converted into distinctive homes, often retaining original architectural features such as stained glass windows and vaulted ceilings.
• School conversions — Former schools that have been divided into individual dwellings or converted into a single large home.
• Warehouse and industrial conversions — Former warehouses, factories, and other industrial buildings converted into residential use, particularly common in city centres.
• Office conversions — Commercial office buildings that have been converted to residential use, often under permitted development rights.
• Pub and shop conversions — Former commercial premises that have been converted into homes.
• Windmill and oast house conversions — Unusual and distinctive buildings that have been adapted for residential use.
• Military building conversions — Former barracks, guardhouses, and other military buildings converted into homes.

Each type of conversion comes with its own set of considerations for lenders, but the fundamental issues are similar across all conversion types. Lenders want to be confident that the conversion has been carried out to a high standard, that the property complies with building regulations, and that it will hold its value as security for the mortgage.

How Lenders Assess Converted Properties

When you apply to remortgage a converted property, the lender will assess it more carefully than a standard residential home. The valuation surveyor will pay particular attention to several key factors that are specific to conversions.

Quality of the conversion

The standard of the conversion work is one of the most important factors. A professional, well-executed conversion that meets modern building standards will be viewed far more favourably than a poor-quality or amateur conversion. The surveyor will assess the quality of the construction, the standard of finishes, and whether the building functions effectively as a home.

Building regulations compliance

Lenders will want to see evidence that the conversion was carried out in compliance with building regulations. This means having a building regulations completion certificate, which confirms that the work was inspected and approved by the local authority building control department or an approved inspector. If a completion certificate is not available, this can be a significant obstacle.

Planning permission

The conversion should have the necessary planning permission for change of use from the original purpose to residential. For some conversions carried out under permitted development rights, a prior approval notification may be required instead. The lender will want confirmation that the property has the legal right to be used as a residential dwelling.

Construction type and materials

The original construction of the building will be assessed. Some conversion types involve non-standard construction materials or methods that can concern lenders. For example, an old stone barn with thick walls may have different thermal and structural characteristics compared to a modern brick-built house. The surveyor will assess whether the construction is sound and suitable for residential use.

Condition and maintenance

The current condition of the property is important. Converted buildings can sometimes have maintenance requirements that differ from standard houses, particularly if they incorporate original features such as large windows, unusual roof structures, or specialist materials. The surveyor will assess the overall condition and identify any areas of concern.

Marketability

Lenders consider how easy the property would be to sell if they needed to repossess it. Highly unusual or niche conversions in remote locations may be viewed as having limited marketability, which could affect the lender's willingness to lend or the loan-to-value ratio they will offer.

Common Challenges When Remortgaging a Conversion

While many converted properties can be remortgaged without difficulty, there are several common challenges that can arise. Being aware of these in advance allows you to prepare effectively.

Missing building regulations certificates

One of the most frequent issues with converted properties is the absence of a building regulations completion certificate. This is particularly common with older conversions or those carried out by the homeowner themselves. Without this certificate, many lenders will be reluctant to proceed because they cannot be confident that the work meets safety and structural standards.

If you do not have a completion certificate, your options include applying to the local authority for a regularisation certificate (which involves an inspection of the work and confirmation that it meets standards), or obtaining indemnity insurance that covers the absence of the certificate. Not all lenders will accept indemnity insurance for this purpose, so a specialist broker's advice is valuable.

Non-standard construction

Many converted buildings have construction types that fall outside the standard brick and tile or brick and slate that most lenders prefer. Stone walls, steel frames, timber frames, concrete structures, and other materials may all feature in converted properties. While these are not necessarily problematic, they can limit the number of lenders willing to offer a mortgage.

Unusual layout or features

Conversions often have unusual layouts that reflect the building's original purpose. A converted chapel might have a very large open-plan living space with extremely high ceilings, while a converted warehouse might have an industrial aesthetic. These features, while attractive to many buyers, can concern lenders who worry about limited appeal in the wider market.

Mixed-use elements

Some converted properties retain elements of their original use or are located in buildings that are partly residential and partly commercial or agricultural. Mixed-use properties require different mortgage products and not all lenders offer them. It is important to be clear about the current use of the entire building.

Listed building status

Many converted properties, particularly older ones such as barns, chapels, and mills, are listed buildings. Listed building status imposes additional restrictions on what alterations can be made, which can affect the property's value and the lender's assessment of it. Some lenders are less willing to lend on listed buildings due to the perceived risks.

Rural or isolated location

Barn conversions and similar rural conversions may be located in isolated areas with limited access. Lenders may view these properties as having reduced marketability compared to homes in more populated areas, which could affect the terms they are willing to offer.

Building Regulations and Planning Documentation

Having the right documentation is crucial when remortgaging a converted property. Lenders and their surveyors will expect to see evidence that the conversion was carried out lawfully and to an acceptable standard.

Building regulations completion certificate

This is the most important document for a converted property. It confirms that the conversion work was inspected and approved as complying with building regulations. These regulations cover structural safety, fire safety, energy efficiency, accessibility, and other essential standards. If you have this certificate, keep it safe and provide it to your solicitor and the valuation surveyor.

Planning permission or permitted development certificate

Evidence that the conversion has the necessary planning consent for change of use to residential. For conversions carried out under permitted development rights (such as some office-to-residential conversions), a prior approval notice from the local authority will suffice.

Regularisation certificate

If building regulations approval was not obtained at the time of the conversion (which sometimes happens with older conversions), it may be possible to apply for a regularisation certificate. This involves a retrospective inspection by building control. If the work is found to comply with the standards that applied at the time it was carried out, a certificate will be issued.

Architect's or structural engineer's certificate

Some lenders may accept a professional certificate from an architect or structural engineer confirming that the conversion work is of a satisfactory standard. This can be particularly useful where a building regulations certificate is not available and regularisation is not possible.

Energy Performance Certificate (EPC)

An EPC is required for all residential properties. Converted properties sometimes have lower EPC ratings due to the challenges of insulating older buildings, but this does not typically prevent remortgaging. It is simply a requirement that must be in place.

What to do if documentation is missing:

If you are missing key documents, start by contacting your local authority building control department to see if they hold any records of the conversion. Check with any solicitors who were previously involved in the purchase or conversion. If documents cannot be found, discuss the options with your solicitor and mortgage broker, who can advise on whether regularisation, professional certification, or indemnity insurance would be the most appropriate route forward.

Finding a Lender for Your Converted Property

The good news is that many converted properties can be remortgaged with mainstream lenders, particularly if the conversion has been carried out to a high standard and all the necessary documentation is in place. However, some conversions may require a more specialist approach.

Mainstream lenders

Many high street banks and large building societies will consider well-converted properties with full building regulations compliance, standard construction types (or acceptable non-standard types), and good marketability. If your conversion ticks these boxes, you should have access to competitive mainstream rates.

Specialist lenders

For more unusual conversions, non-standard construction types, or properties with missing documentation, specialist lenders may be more appropriate. These lenders have experience assessing non-standard properties and may take a more flexible approach to underwriting.

Building societies

Some building societies, particularly regional ones, are known for their pragmatic approach to unusual properties. Their manual underwriting processes allow them to assess each case on its merits rather than applying rigid automated criteria.

Key factors that affect lender choice:

• The type of conversion (barn, chapel, warehouse, and so on).
• The construction materials and method.
• Whether all documentation (building regulations, planning, and so on) is in place.
• The property's location and marketability.
• Whether the property is listed.
• The loan-to-value ratio you require.

A whole-of-market mortgage broker with experience in non-standard properties is the best starting point. They can assess your property's specifics, identify suitable lenders, and present your application in a way that addresses the lender's likely concerns. This targeted approach is far more efficient than applying to multiple lenders yourself and risking unnecessary credit checks.

Maximising Your Chances of a Successful Remortgage

If you are planning to remortgage a converted property, the following practical steps can help ensure the process goes smoothly and you achieve the best possible outcome.

Gather all documentation

Collect all relevant certificates and documents relating to the conversion. This includes the building regulations completion certificate, planning permission or permitted development certificate, architect's drawings, structural engineer's reports, and any warranties. Having these ready from the start can prevent delays.

Maintain the property well

Ensure the property is in good condition before the valuation survey. Address any outstanding maintenance issues, particularly those related to the building's original features or specialist construction. A well-maintained conversion will receive a more favourable valuation.

Highlight the quality of the conversion

If the conversion was carried out by a reputable developer or architect, make this known to the valuation surveyor. Award-winning conversions or those featured in publications can help demonstrate quality. Provide any documentation that showcases the standard of the work.

Address any compliance gaps

If building regulations documentation is missing, take steps to address this before applying. Whether through regularisation, professional certification, or indemnity insurance, resolving compliance issues in advance makes the remortgage process much smoother.

Consider the valuation

Converted properties can sometimes be difficult to value because of a lack of comparable sales in the area. If you believe the property may be undervalued, your broker can request that the lender instructs a surveyor with experience in that type of conversion. Providing details of comparable sales yourself can also be helpful.

Use a specialist broker

The importance of using a broker who understands converted properties cannot be overstated. They will know which lenders are most receptive, what information to provide, and how to navigate any issues that arise. A specialist broker can often find solutions where a generalist might struggle.

Be upfront about the property

Provide full and accurate information about your property from the outset. If it has unusual features, non-standard construction, or any issues, it is better that these are identified early rather than causing problems later in the process. Transparency with your broker and solicitor leads to better outcomes.