Our Land & New Homes department is here to help.

Many people own commercial buildings which are now either underused, or redundant.  – most do nothing about it. Yet demand for building plots, and refurbishments for change of use has never been higher. If you own such an opportunity, here are some things to think about.

The first key question is what could the buildings, or land upon which it sits, be used for? The second key question is how that proposed use may fit in with the immediate surrounds?

Planning requires that consents relate to use. Just because there is a consent for one use, does not assume that a consent will be given for another. Furthermore, areas of land are zoned for use, typically commercial, residential, and agricultural. That means that you are unlikely to secure consent for a factory in the middle of a housing estate, nor for a residential house on an industrial estate.

However, over time, areas change, as does demand for land / building use. This creates two opportunities.

Non- conforming use: Many years ago a consent may properly have been given for a scrap yard. As years passed residential housing may have crept closer and closer. Thus, although the scrap yard has a legitimate commercial consent, its use may now be “non-conforming” with the surrounding area. A consent for a change of use to residential may be favourably considered even though its existing consent is for commercial. This is just one example of a non-conforming use, there are many others.

Redundant Buildings: As an extreme example, a derelict cotton mill is unlikely to be resurrected as a cotton mill, but that is what the existing consent is for. More commonly, commercial trends have seen the decline in the demand for licensed public houses, newsagents, and independent petrol stations. If the surrounding area is residential, the prospects for a change of use are good.

Many areas have a Unitary Development Plan, abbreviated to UDP. A five or ten year plan in which anticipated demand for residential, commercial, and leisure uses ( amongst others) are anticipated and land allocated for such use, often on a change of use basis. This information is available from the local council. If land has been allocated for a change of use, securing a consent is much easier.

Those without a UDP will have some sort of Development Master plan. They will also have targets to meet when it comes to supplying new homes. Those authorities who are not meeting their targets on providing new homes may be more flexible for change of use applications, those who are, less so.

The usual basic questions apply. Would a residential dwelling fit on the land? Is there independent access? What is the visibility like for vehicular  access onto the main road? What type of dwelling might be appropriate? Are the properties immediately surrounding single storey, double storey, or higher? Would a new dwelling obviously adversely affect the light, privacy or amenity of surrounding properties? If there is an opportunity, you will want some advice on how best to sell it. Do you sell it subject to planning, with outline consent, or detailed consent?

The advantage of selling it subject to planning for a change of use is that you incur no architects or planning costs. You may be surprised at the alternative uses which a prospective purchaser may think of. The disadvantage is that the purchaser may factor in the worst case scenario in making an offer, it will also be a consent which suits them. An alternative consent may have generated greater value. It also represents the longest possible time between an agreed sale, subject to planning, and a consented one.

The advantage of an outline consent is that you have established the principle of a change of use to something, and offer the buyer some flexibility in being able to put in a detailed consent for what they want to build.. The disadvantage is that you will have incurred some planning and architects costs- and a buyer will still need a detailed planning consent which will take more time. Equally it establishes a change of use which may not be the best value, or be most in demand.

The advantage of a  detailed consent is that you have an “oven ready” product. Its value clear and maximised. The transaction clean. It offers the minimum period between a sale being agreed, and completion. The disadvantage is that you will have incurred planning and architects fees, and the detailed consent may appeal to some, but not others.

If you are positive about most of the aforementioned – we would be pleased to come and professionally appraise the opportunity for you. The key will be juxtaposing existing use and value, with that value which a change of use may offer. That is where Hannells can help.

We are pleased to advise you on the route that best suits your circumstances, and can recommend professionals who can assist you with planning/ architects work if required.

For more information, and an appointment for us to visit you, contact:

Gary Longden, Hannells Land and New Homes, 07920 553960.