Permitted Development Conversions Face Finance Gap
UKPulse Property Desk
Landlords converting commercial properties to residential units under permitted development rights are encountering difficulties securing finance.
- A mismatch exists between permitted development rights and available finance products.
- Class MA permitted development rights allow conversions without full planning applications.
- Lenders' assessment criteria have not fully adapted to this borrower category.
Landlords attempting to convert commercial properties into residential units using permitted development rights are facing challenges due to a gap in available finance products. Class MA permitted development rights enable these conversions without the need for full planning applications.
However, lenders' assessment criteria have not yet fully adapted to this specific category of borrower, creating a mismatch with the existing development rights.