Commercial Property

Change of Use of a Premises – What do I need to do?

Whether you need to do anything if you decide to change the use of a premises depends on two main factors.

02 Sep 2024

The first is the current use of the premises and the second is whether you own or lease the premises. This means we must consider the use aspects of the premises from a planning perspective. If the premises are leased, you will need to focus on the use clause in the lease.

Planning considerations

When considering change of use of any premises, your first line of enquiry will be to the planning authority. The planning authority deals with all aspects of planning to include the change of use of a premises. That change might be from residential to commercial or, where the premises are already commercial premises, a change in the nature of use of those premises.

There are a number of Use Classes used to define the use of properties.

Use Classes

Many of the Use Classes defined in the Town and Country Planning (Use Classes) Order 1987 were re-assigned by The Town and Country Planning (Use Classes) (Amendment) (England) Regulations 2020. The main aim of the recategorisation was to allow more flexibility in changing from one use to another without the need for planning permission.

If you wish to change from residential to commercial or vice versa or if you wish to change between use classes, you must speak with the local authority and, if necessary, apply for planning permission for change of use. Usually, changes from one use class to another or from residential to commercial and vice versa will require planning permission for change of use.

Planning permission for change of use may also be needed when the change constitutes a material change of use. This generally means a significant change impacting on the use of the premises. Each case must be considered on its own merits.

Additional permissions will be required if the premises form part of a listed building. You can conduct a search on the Historic England website to find out if the premises are listed.

If the premises are leased, you may need landlord’s consent

If you lease the premises, you must first check the permitted use clause in the lease. The use clause will define the uses to which you can put the premises. Check whether your proposed use is within the use provisions in the lease. If it is not, you must make a formal application to the landlord for permission for change of use. However, you should bear in mind that the landlord may not be obliged to grant consent to the change of use unless there is a qualification in the lease stating that the landlord cannot unreasonably refuse consent.

There may also be clauses in the lease that trigger rent increases or reviews when consent to change of use is granted. Check the terms of the lease to find out if there is anything that is likely to cause an increase in rent or otherwise impact on your use of the premises.

Also, once the consent to change of use has been agreed, make sure you obtain that in writing. Your lease may require this consent to be made by deed.

What other consents might you need?

In addition to any planning and landlord’s consent, if you are carrying out any alterations, you may need further local authority consent for changes affecting the building regulations.

Check whether you need any health and safety permissions for the change you intend to make to the premises, or their operation once change of use has come into effect.

If the premises are subject to a mortgage, check to see whether the mortgage lender’s consent is required.

Will you need a license following change of use?

If you plan to sell any alcohol from the premises you will need a premises license. You are also likely to need a premises license if you intend to show films, put on live music or host an indoor sporting event. The Government’s website has a page on premises licenses which is useful for checking these requirements. Again, you will need to apply to the local council for one of these.

This list is not exhaustive, and you should seek professional advice to ensure you cover all eventualities.

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M&P Commentary

Sophie Williamson, Senior Associate Solicitor in our Commercial Property team, said:

“The updated legislation which came into force from 1st September 2020 certainly makes it easier to change the use of a property. However, as you’ll see above, there are still a number of considerations to be made, particularly if you are a tenant. If you require assistance interpreting your lease, please contact our Commercial Property department via 01708 784000. We would be happy to assist.”

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