Barn Conversion Finance

Charterbank provides fast reliable finance for barn conversions across England and South Wales.

Barn conversions make some of the most desirable and attractive rural homes and therefore developments. However, converting an agricultural building into a comfortable, useable home on schedule and on budget can prove challenging owing to the very nature of the building and its original intended purpose. Funding such a conversion needs a lender that understands the process inside out.

We know that every barn, project and customer is different. As a Principal Lender specialising in property finance for small developments, we are able to offer bespoke finance for all types and sizes of barn conversion, including loan facilities for first time developers. We know that costs can be hard to predict exactly, and that additional funds or time may be required.

As a specialist non-status lender, Charterbank only provide loan facilities for business purposes (such as build to sell or build to let) and cannot lend where the purpose is to occupy the property once finished. Loan facilities are available to individuals, sole traders and limited companies including SPV’s, with no personal guarantees typically required.

• Products from 3-12 months • Immediate decisions • Up to 65% (net) LTV • Ltd Companies accepted • Self cert non status loans • No monthly interest payments • No upfront fees • No exit fees • No penalties • No red tape

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How does development finance for a barn conversion work?

This type of finance usually works by securing the loan facility against the barn, land or property being developed. However, alternative land or property can be offered as security when the loan is being arranged.

You can apply in your personal name or a company (which can be a new or existing company). Typically 50–60% (net) of the site/property value can be advanced at the start of the loan with additional stage payments available throughout the build.

Products are available to fund up to 100% of the development costs.

Stage payments are pre-determined at offer stage for ease of budgeting. However, these can be varied if the build programme or budget alters. Payments are typically made within 1 working day of the in-house site inspection having been carried out, and made without the need for a Quantity Surveyor or Monitoring Surveyor. No specific structural warranty provider or supervising Architect is imposed, leaving the developer free to choose the provider that best suits their needs.

Charterbank is dedicated to providing an exceptionally high level of service and is renowned for its speed, integrity and reliability amongst customers and introducers alike. The management team enjoy a wealth of property, development and commercial finance experience. Contact us for an initial discussion.

We understand barn conversions inside out

See your initial idea grow and realise its potential

Examples of barn conversion developments

While lending throughout the South West and Southern half of the UK we are seeing farms and agricultural businesses evolve, develop and diversify.

Over recent years we have seen a significant rise in the development of farm buildings and barn conversions for short-term letting and holiday letting, something that we have a particular appetite for funding.

Here, explore some recent cases that we’ve either considered or supported – from holiday accommodation to new-builds for letting purposes and projects for onward sale:

› £180,000 development facility for a milking parlour conversion in Dorset provided to a farmer creating holiday accommodation for lifestyle holidays on a working farm.

› £150,000 development facility for a former Threshing Barn in Devon to be converted to holiday use on a non-working farm.

› £500,000 development facility for a mixed 4 unit scheme in mid Cornwall comprising 2 conversions and 2 new-builds for letting purposes.

› £250,000 development facility for the conversion of a former Cattle Shed in Cornwall to fund the entire development of a 2 unit project for onward sale.

› £50,000 top-up facility for a Class Q conversion in Somerset where the builder/developer had incurred cost overrun.

Is barn development finance for you?

Applications are welcomed from developers and private individuals of all levels of experience. First time developers are accepted provided a suitable professional team has been appointed. Charterbank only provide loan facilities for business purposes (such as build to sell or build to let) and cannot lend where the purpose is to occupy the property once finished. You can contact us for an informal discussion about your finance requirements.

Find out more information on common loan scenarios
You can contact us for an informal discussion about your finance requirements.
Or click here to apply for a barn conversion development loan.

Additional development and refurbishment FAQs

Do you fund first-time developers?
Yes, that’s one of the ways we are different from some other lenders. We are also able to assist if you have inherited or have been gifted a barn that you want to develop. Talk to us today about non-status property development finance.
What is the typical loan size for barn development projects?
Development loans range from £30,000 – £500,000 with larger requirements considered on a case by case basis.
How can development finance be used?
Charterbank’s tailored development finance is available for small to extensive barn conversion projects. We provide loan facilities for business purposes such as build to sell or build to let. Our loan products are fast, dependable and bespoke to suit the needs of the project.
What sort of terms come with a loan?
Flexible loan terms from 3–12 months are available and come complete with rolled up interest, no up-front fees, no exit fees or early repayment penalties. Under most circumstances loan terms can be extended if additional time is required.
Can I arrange barn finance for a part-finished project?
Charterbank specialise in finance for part built, unfinished and stalled projects and developments. We will even consider providing funding for part-built projects with missing or uncertified building works. Lending decisions are made on a case by case basis.