Can I change 'commercial' property to non-commercial?

betty2

I was looking for a coastal property with 6+ bedrooms for myself and a relatives family to live in but could see nothing worthwhile. Then I saw some really attractive B+B commercial properties with lots of rooms, plenty of parking space, etc, and situated right by the coast. Making matters better is that they are no more expensive than some of the non-commercial properties I have seen in the area. So I am wondering: Could I purchase one of these commercial properties and make it non-commercial without incurring any ongoing extra costs apart from council tax? Can anyone tell me anything helpful please as I don't know anything at all about this kind of situation?
Thank you.

agrinnall

I think you would need to apply for change of use. While I have no knowledge of the process I would be surprised if there isn't a cast to do it, and the local authority may not be keen to reduce their income by having the property switched from business rates to council tax.

PasturesNew

You would need to apply for planning permission for a Change of Use - and the council would look at the commercial viability of the business and what's going on round town. e.g. if they're short of beds and want more tourists, it'd be a "no"; if the town's full of empty B&Bs doing no trade, then it's more likely to be a "yes".

Chat to the Council planning dept and get a feeling for what they'd most likely do.

betty2

PasturesNew wrote: »

You would need to apply for planning permission for a Change of Use - and the council would look at the commercial viability of the business and what's going on round town. e.g. if they're short of beds and want more tourists, it'd be a "no"; if the town's full of empty B&Bs doing no trade, then it's more likely to be a "yes".

Chat to the Council planning dept and get a feeling for what they'd most likely do.

Thank you. That is useful information.

Ozzuk

Are you paying cash? If you'll need a mortgage then arrangement fees and rates are much higher on commercial properties and you'll need to write a business case.

I've gone through this myself, its not difficult and processes can differ between planning departments. We had to prove the business wasn't commercially liable (and don't forget until change goes through you'll have to pay business rates). We also had to 'offer' the property to the local community (who declined). Finally, we also had a letter of support from the neighbours which really helped.

So, very achievable and didn't really cost anything IIRC, I think the planning fee was low. Arranging the initial purchase finance was a nightmare though.

stator

You can apply for planning permission before you even own the property

davidmcn

Ozzuk wrote: »

If you'll need a mortgage then arrangement fees and rates are much higher on commercial properties and you'll need to write a business case.

Or you make your offer conditional on obtaining planning, and once you have that you complete with a residential mortgage.

lincroft1710

agrinnall wrote: »

I think you would need to apply for change of use. While I have no knowledge of the process I would be surprised if there isn't a cast to do it, and the local authority may not be keen to reduce their income by having the property switched from business rates to council tax.

The council may well benefit from the property being wholly non-commercial, Council Tax goes to the council, Non-Domestic Rates go via the council to a central fund which the government distributes back to councils in a proportion it believes is fair.