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Permitted Development Loan

Have you heard about permitted development funding? Back in 2015, The Town and Country Planning (General Permitted Development) Order opened up new avenues for property owners.

They could now undertake specific types of projects without the hassle of applying for planning permission.

These permitted development rights encompass extensions within certain constraints and, in select cases, altering a building’s use without navigating through additional bureaucratic hurdles.

Permitted development funding emerges as a financial solution tailored explicitly for such ventures.

Noteworthy features

  • Flexible terms spanning from 6 months to 18 months.
  • Accessible funding for both residential and commercial developments.
  • Small extensions and conversions can be considered.

Let’s delve into the realm of permitted development property finance and uncover the myriad advantages it brings to property developers and landlords alike. Picture this scenario: You’re bursting with ideas to revolutionise a property, yet financial constraints threaten to stall your plans.

Enter permitted development finance, a lifeline offering the necessary funds to propel your development dreams forward.

Challenges of development finance for permitted development

Amidst the allure of permitted development loans, it’s imperative to acknowledge the accompanying pitfalls and hurdles. Let’s delve into the flip side of this financing coin:

  • Risk Factor: Like all loans, permitted development financing entails inherent risks. A deviation from your development plan could spell repayment challenges down the line. Mitigating risk demands a robust business strategy and contingency measures to navigate unforeseen obstacles.
  • Cost Considerations: Permitted development loans may entail higher interest rates compared to their traditional counterparts. Calculating the true cost of financing is paramount to gauging the profitability of your development venture.
  • Eligibility Constraints: Not all projects qualify for permitted development rights, potentially restricting access to this financing avenue. Conducting due diligence to ascertain your project’s eligibility is imperative before banking on permitted development finance.

Frequently asked questions

Permitted development (PD) rules allow certain construction, alterations, and changes of use to be carried out in the UK without requiring full planning permission. These rules, current as of 2024, are set by the government and updated periodically. As of January 2024, there are some proposed changes under consideration, but the key points currently remain:

  • Exemptions for small-scale projects: You can usually build extensions, outbuildings, and other minor changes to your property without planning permission, as long as they meet specific size, height, and location limitations.
  • Prior approval process: For some projects exceeding PD limits, you can seek “prior approval” from your local authority instead of full planning permission. This involves submitting detailed plans and demonstrating compliance with specific regulations.
  • Nationally set rules with local variations: PD rules apply across England, Wales, and Scotland, but specific limitations and restrictions might differ depending on your location, listed building status, or conservation area designation.

Common examples of projects potentially covered by PD in the UK include:

  • Single-story rear extensions: Up to certain size and height limits (typically 3–4 metres) depending on your house type and location.
  • Loft conversions: If they adhere to specific restrictions on roof extension and habitable space increase.
  • Outbuildings and sheds: Limited by size and proximity to boundaries.
  • Change of use: Converting certain buildings, like offices, to residential dwellings under specific conditions.

Even under PD rules, your project can be refused if it doesn’t meet specific criteria or contravenes local regulations. This can happen for reasons like:

  • Exceeding PD limits: Size, height, or other limitations are surpassed.
  • Impact on neighbours: The project significantly overshadows or overlooks neighbouring properties.
  • Listed building or conservation area concerns: Development alters the character or appearance of a protected property or area.
  • Prior approval application issues: Your plans lack sufficient detail or fail to comply with necessary regulations.

It’s crucial to thoroughly research PD rules and consult your local planning authority before starting any project. They can advise you on specific limitations, confirm if PD applies, and guide you through the prior approval process if needed.