Manchester Development Finance

Conversion Finance Manchester

Conversion finance in Manchester funds the transformation of existing commercial, industrial, and mixed-use buildings into residential properties. Whether you are converting a former office block into apartments under permitted development rights, stripping back a Victorian warehouse in Ancoats to create loft-style living spaces, or undertaking a heavy refurbishment of a disused retail unit into an HMO, conversion finance provides the specialist funding structure your project requires. Manchester Development Finance is the specialist broker that secures competitive conversion and refurbishment development loans across Greater Manchester from our panel of 50+ lenders.

Greater Manchester's conversion market is one of the most active in the UK outside London. The city-region's deep stock of post-industrial buildings, surplus commercial space accelerated by changing work patterns, and sustained residential demand from a growing population create a pipeline of conversion opportunities that shows no sign of slowing. From commercial to residential finance in Manchester's city centre to permitted development conversions across the wider boroughs, we arrange the full spectrum of conversion and refurbishment funding — matching developers with lenders who genuinely understand the complexities of converting existing buildings into high-quality homes.

Building conversion and renovation project in Manchester - commercial to residential transformation

Types of Conversion Projects We Fund

Our conversion finance expertise covers every type of building transformation across Greater Manchester. Each project type has unique funding requirements — we match you with lenders who specialise in your specific conversion category.

Commercial to Residential

Office and warehouse to apartment conversions are the backbone of Manchester's conversion market. We fund the full spectrum — from single-floor office conversions to large-scale warehouse transformations delivering 50+ residential units. Commercial to residential finance in Manchester typically provides 70–80% LTC with phased drawdowns aligned to your build programme.

Heavy Refurbishment

Heavy refurbishment development finance in Manchester covers projects that go beyond cosmetic renovation — stripping buildings back to their structural frame, reconfiguring layouts, adding floors, and installing entirely new building services. These projects require specialist lenders who understand the complexity and cost profile of heavy refurb schemes, and we know exactly who to approach.

Permitted Development (Class MA)

Permitted development conversions in Manchester allow office-to-residential and commercial-to-residential changes of use without full planning permission. Class MA rights have opened up a significant pipeline across Greater Manchester's suburban boroughs. PD conversion finance typically offers faster completion timelines and competitive rates for experienced developers working in proven residential markets.

HMO Conversions

HMO conversion development loans in Manchester fund the transformation of standard residential properties into Houses in Multiple Occupation. Manchester's large student population and growing young professional demographic create strong demand for high-quality HMO accommodation. We arrange finance for HMO conversions across Greater Manchester, including areas with established HMO markets in Fallowfield, Rusholme, and Salford.

Mixed-Use Conversions

Mixed-use conversion finance covers projects that retain a commercial ground floor — typically retail, cafe, or office space — while converting upper floors to residential apartments. This model is particularly common in Manchester's Northern Quarter and along high streets across the wider boroughs, where ground-floor commercial use supports the character of the street while upper-floor residential delivers the scheme's primary returns.

Heritage & Listed Building Conversions

Grade II listed building conversions in Manchester require specialist lenders who understand the additional complexities of heritage construction — including conservation officer requirements, specialist materials, and the potential for unforeseen works. Manchester's rich industrial heritage means the city has one of the largest stocks of listed commercial buildings outside London, creating unique conversion opportunities for experienced developers.

How Conversion Finance Works in Manchester

Conversion finance in Manchester is structured as a development loan with phased drawdowns that align with the progress of your conversion works. The initial advance typically covers the acquisition of the property (or refinancing of an existing holding), with subsequent tranches released as construction milestones are achieved. Loan-to-cost (LTC) ratios for conversion finance generally range from 70% to 85% of total project costs, depending on the borrower's track record, the complexity of the conversion, and the strength of the end values. For experienced developers with proven conversion track records, stretch senior facilities at 80–85% LTC are available from specialist lenders on our panel.

Drawdown schedules are typically tied to a monitoring surveyor's assessment of works completed. The lender appoints a monitoring surveyor (MS) who inspects the site at each drawdown stage, confirming that the contracted works have been completed to the required standard before releasing the next tranche of funding. For conversion projects in Manchester, the monitoring surveyor will pay particular attention to structural integrity, compliance with building regulations for change of use, and the quality of fire safety installations — all areas where conversion projects carry specific risk profiles that differ from new-build schemes.

The valuation process for conversion finance considers both the current value of the existing building and the gross development value (GDV) of the completed residential units. Lenders will typically cap the facility at both a maximum LTC percentage and a maximum loan-to-GDV percentage (usually 60–70% of GDV), with the lower of the two calculations determining the final loan amount. Understanding how Manchester valuers approach conversion schemes — particularly in emerging locations where comparable evidence may be limited — is one of our key strengths as a specialist Manchester conversion finance broker. Learn more about the full funding process on our how it works page, or use our development finance calculator to model your conversion project's borrowing capacity.

Manchester Conversion Hotspots

Greater Manchester offers a wealth of conversion opportunities. These key areas represent the strongest current markets for commercial-to-residential and refurbishment projects.

Northern Quarter

Manchester's creative and cultural hub with a high concentration of Victorian and Edwardian commercial buildings ripe for conversion. Above-shop residential schemes, warehouse-to-apartment projects, and mixed-use conversions thrive in this high-demand neighbourhood.

Ancoats

The world's first industrial suburb offers outstanding mill and warehouse conversion opportunities. Grade II listed cotton mills and former industrial buildings provide characterful spaces that command premium residential values in Manchester's most sought-after neighbourhood.

NOMA

The £800M NOMA regeneration district north of Victoria station presents office-to-residential conversion potential as the area's commercial landscape evolves. Surplus office stock and strategic regeneration investment create funding-ready conversion opportunities.

Spinningfields

Manchester's premier business district has growing potential for office-to-residential funding as older commercial buildings become obsolete. The area's premium location and excellent amenities support strong residential GDV for well-executed conversion schemes.

Piccadilly

The HS2 masterplan and Mayfield regeneration are transforming Manchester's eastern gateway, creating conversion opportunities in surrounding commercial buildings. Office-to-residential funding demand is rising as the area's residential character strengthens.

Stockport

Stockport's £1B town centre regeneration and strong PD rights make it one of Greater Manchester's most active conversion markets. Former office buildings and retail units are being transformed into residential schemes with strong yields and competitive acquisition costs.

Conversion Finance FAQs

Common questions about conversion and refurbishment finance in Manchester, answered by our specialist development finance team.

Conversion finance is a specialist type of development finance designed to fund the transformation of an existing building from one use to another — most commonly commercial to residential. Unlike standard refurbishment loans, conversion finance accounts for the structural complexity of changing a building's purpose, including works to meet residential building regulations, fire safety requirements, and acoustic standards. In Manchester, conversion finance typically covers 70–85% of total project costs and is available for schemes ranging from small above-shop conversions to large-scale warehouse and office transformations.
Conversion finance facilities in Manchester typically range from £250,000 for smaller projects to £10,000,000+ for large-scale commercial-to-residential schemes. The amount you can borrow depends on the loan-to-cost (LTC) ratio offered by the lender — usually 70–85% of total development costs — and the gross development value (GDV) of the completed units. Use our development finance calculator to estimate borrowing for your Manchester conversion project, or contact us for a bespoke assessment within 48 hours.
Interest rates for conversion finance in Manchester currently range from 8% to 12% per annum, depending on the complexity of the conversion, borrower experience, loan-to-cost ratio, and the location of the property. Straightforward permitted development conversions in strong locations like Ancoats or Stockport tend to attract the most competitive rates, while heavy refurbishment projects involving listed buildings or complex structural work will sit at the higher end. Our panel of 50+ lenders ensures we can secure competitive terms for every conversion type.
Permitted development (PD) conversions under Class MA allow the change of use from commercial, business, and service use (Class E) to residential (Class C3) without full planning permission. Instead, you submit a prior approval application to the local authority, which considers factors such as transport, flooding, contamination, and natural light. However, Manchester city centre is subject to Article 4 directions that remove certain PD rights, so it is essential to check with the relevant local planning authority. Areas across wider Greater Manchester — including Stockport and surrounding boroughs — offer extensive PD opportunities. Our how it works guide explains the process in detail.
Heavy refurbishment finance is a development loan for projects that involve significant structural alteration to an existing building — beyond cosmetic or light refurbishment. In Manchester, heavy refurb projects typically include stripping a building back to its structural frame, reconfiguring internal layouts, adding floors, replacing roofs, and installing new mechanical and electrical systems. Heavy refurbishment development finance in Manchester is structured similarly to new-build development loans, with phased drawdowns tied to construction milestones and monitoring surveyor sign-offs. Rates typically range from 8.5% to 12% per annum with LTC ratios of 70–80%. View our full range of development finance services for more details.
Yes, first-time developers can access conversion finance in Manchester, although the terms may differ from those offered to experienced developers. Many lenders on our panel will fund first-time developers on smaller conversion projects — particularly straightforward permitted development schemes or single-building HMO conversions — provided the borrower can demonstrate relevant professional experience, a credible project team, and sufficient equity contribution. We specialise in helping first-time developers navigate the process and matching them with lenders who have appetite for newer borrowers. Get in touch to discuss your first conversion project.
We typically issue indicative terms for conversion finance within 48 hours of receiving a complete enquiry. Full completion — from initial application through to drawdown of the first tranche — usually takes 3–6 weeks, depending on the complexity of the project, valuation turnaround times, and legal due diligence. Straightforward PD conversions with experienced borrowers can complete in as little as 2–3 weeks. More complex schemes involving listed buildings or multi-phase conversions may take 6–8 weeks. Our established lender relationships and deep knowledge of the Manchester market enable us to fast-track applications wherever possible.
Manchester offers exceptional conversion opportunities across the city-region. The Northern Quarter and Ancoats are hotspots for warehouse and mill conversions, while NOMA and Spinningfields present office-to-residential opportunities as commercial buildings become surplus. Piccadilly offers conversion potential driven by the HS2 and Mayfield regeneration programmes, and Stockport Town Centre has a growing pipeline of commercial-to-residential PD schemes supported by the council's £1B regeneration masterplan. Explore our full area guides for detailed market intelligence on each location.
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Ready to Fund Your Manchester Conversion?

Whether you're planning a commercial-to-residential conversion, a permitted development scheme, or a heavy refurbishment project, our specialist team will secure competitive conversion finance terms within 48 hours. Get started today.

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