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Mortgage Advisor & Director
Starting a barn conversion?
Converting a barn is the dream of many, but how can you raise funds to make the dream a reality? Anyone who has experience of home renovation will understand the work involved in getting a project like a barn conversion off the ground.
Our expert advisors can help you to get your mortgage in place to start your project.
About planning permission
Since relaxing rules in 2014, you may not require planning permission to convert your barn into your dream home; some agricultural projects may be allowed under permitted development. You must still provide prior notification to your local council which will require verification by your conveyancer. It is sensible to send your plans to the local council for them to confirm the development classes as a 'conversion' permitted development, rather than a 'rebuild' requiring planning permission. We would recommend seeking specialist guidance in this area to ensure your development is initiated without any legal questions outstanding.
More points to consider:
- We would also recommend consulting a qualified surveyor ahead of developing formal plans.
- Understand if the land you are looking to develop is subject to any agricultural restrictions which can be costly and time-consuming to remove.
- Check you have the right access and right of way to the new property - you will need permission from the local authority to grant additional access requirements.
- Special rules will apply if the property is a listed building - you will need to lodge a 'Listed Building Consent' application with your local authority. Good news, once converted, your listed building is likely to hold additional value.
Understand your budget
If you've ever watched a TV show about property conversions, you will recognise that going over budget is not uncommon. With barn conversions, you are likely to experience unexpected issues along the way that will add cost to your project. Your mortgage provider will look for a detailed budget plan for the project ahead of lending; otherwise known as a 'schedule of works'.
Lenders will expect you to include a contingency to cover unforeseen costs; include this as a percentage of the total.
How to get a mortgage for a barn conversion
You can absolutely get a mortgage for a barn conversion! However, your mortgage provider will be looking for you to meet different criteria than for a regular mortgage. As a niche mortgage, you may likely to be dealing with specialist lenders - our advisors can help you to get the best rates possible as a whole-of-market lender.
You may be looking for the funds to be released as milestones to align with your development. With a self-build mortgage, fund release is staged to fit with the phases of a build or renovation project:
- Purchase of land or barn
- Foundations or structural renovation
- Eaves height completion
- Implementation of a watertight roof
- Internal fixtures and fitting
Are there alternatives to a barn conversion mortgage?
There may be situations where a self-development barn conversion mortgage is not applicable, and you need an alternative. This is where our advisors can help.
There are a few situations where you may consider alternative funding:
- Where you are purchasing via an auction - not giving you enough time to secure a mortgage.
- You intend to sell the development shortly after completion, so short term financing is more applicable.
- Your development does not meet the required criteria of lenders and is deemed 'unmortgageable.
- A short-term loan is all you need to convert your barn.
In these situations, a bridging loan may be more applicable to your needs. A bridging loan is a type of short-term financing designed to bridge the gap until longer-term funding is available (for example a mortgage). You will need to define an exit strategy, such as a sale or moving to a standard mortgage, once your development is complete.
How much can I borrow?
Unfortunately, standard borrowing calculators do not readily apply to barn conversions.
Our experienced advisors can access specialist lenders that will be able to provide a calculation of how much you are able to borrow. As a whole-of-market service, we can provide the best rates out there for your barn conversion or self-build development. Contact us today to start the process.
How can I learn more?
Our advisors have helped many people turn their dream barn conversion into a reality. We're mortgage professionals with years of experience. We know how to find the best deal for your needs, and we'll help you feel more at ease about this process than ever before!
We are experts in finding barn conversion mortgages that will suit all kinds of different budgets. Not only do we work hard when it comes to negotiating with lenders on behalf of our clients, but also during the application stage as well where there is always room for unforeseen circumstances or challenges - so don't worry if things get complicated; just leave it up to us! Get started comparing deals now.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
