Barn Conversion Mortgage

How easy it will be to borrow money for a barn conversion depends on whether you’re buying a home that has already been converted, or you plan to convert yourself. Either way, our advisors can help you achieve your plans.

How do I get a barn conversion mortgage?

If you are hoping to buy an existing barn conversion, you can usually do this with a standard residential mortgage. Most lenders will cover a barn property, provided that it is largely built from brick or stone and has a slate or tile roof. 

If it is timber clad or has a thatched roof, it may be considered a non-standard construction. In this case you may need to find a more specialist lender. A good mortgage advisor will be able to help find the right provider in this situation.

Can I get a mortgage for a barn that has agricultural restrictions?

Agricultural restrictions are also known as agricultural ties, agricultural occupancy conditions (AOCs) and ‘ag tags’.

These conditions are imposed by a planning authority, usually a local council, when granting planning consent for a building. They reserve a property so it can only be lived in by people who work in agriculture, restricting who it can be sold to.

These properties can be mortgaged, but it can be challenging to find the right lender. You may also find that the restrictions affect the value of the property.

What type of mortgage will I need to do a barn conversion?

If you’re planning to convert a barn yourself, you can only get a mortgage on a building that is ‘habitable.’ That generally means it needs to have a working kitchen and bathroom. 

If the building is literally a barn with no such facilities you will need to explore other finance options, such as a Self-Build Mortgage, a development loan or a bridging loan.  We can help you explore the options and borrow the funds in the most effective way to achieve your plans.

Will I need planning permission for a barn conversion?

Not necessarily, as rules brought in in 2014 made this process easier with ‘permitted development rights.’ You will still need to notify the local authority before starting the project, and they could reject your proposed conversion.  

Check with an architect, as planning consent might be needed for a major rebuild, and there will be more permissions required if the barn is a listed building.

Can I get a mortgage for a barn conversion on a listed building?

Yes, you can borrow money to convert a listed building. The most appropriate way to finance your barn conversion will depend on your specific situation and your plans for the property. Again, seek professional advice on the approach that will suit you best. 

Can I still obtain a mortgage for a barn conversion with bad credit?

A lot depends on the specifics of your credit situation. A few missed payments or a low value, settled CCJ won’t usually be an issue. Other more severe credit problems could restrict your choice of lenders and potentially make it more expensive to borrow money. 

An experienced mortgage broker will be able to explain the options available to you.

What are the pros and cons of barn conversions?

The big advantage of a barn conversion is that they create fantastic, spacious homes that really hold their value. Features like exposed beams and floor to ceiling windows are very appealing to buyers. 

The position of the barn is very important. Some are in ideal locations with views over fields and woodland, while others are close to the working centre of a farm and may not enjoy such a picturesque view. 

Insulation and energy efficiency is very important as barns have a reputation of being expensive to heat, and natural light can be a challenge if the original building had little in the way of windows. Choosing the right barn to convert is crucial in delivering a successful, high value project. 

How can a mortgage broker help with a barn conversion?

Speak to a mortgage broker as early as possible in the process. We have helped many clients achieve their dream of converting a barn into a fantastic home. 

We’ll explore the options for you to finance your plans, whether you wish to buy a ready-made barn or create a unique property yourself. Get in touch today.

Some Bridging Finance is not regulated by the Financial Conduct Authority.

Approved by the Openwork Partnership on 22.03.2023