Can you get a mortgage to convert a redundant garage?

Can you get a mortgage to convert a redundant garage?
Home Blog Can You Get A Mortgage To Convert A Redundant Garage?
Mike Whitehead

Author: Mike Whitehead

Content Editor

Updated: March 18, 2024

If you’re lucky enough to have a garage attached to your home, you may have thought about converting it to provide more space. But how much will that cost and which finance options would be available?

Most homeowners’ first thought would naturally turn to using a mortgage as a means to fund this type of renovation. The good news is it is possible to use a home loan for a garage conversion, albeit you may need to use a specialist provider as this would also be dependent on the overall cost of the project.

The same option could also be used to cover the costs of renovating other buildings linked to a property such as a barn or outhouse.

The amount you can borrow will depend upon the lender’s affordability assessment. Once you know what this will be, your monthly repayments can be calculated and determined by the interest rate and mortgage term available. This could also be indirectly impacted by other eligibility criteria such as your credit history and deposit.

Is converting a garage a good idea?

Converting a garage – if done to a professional standard – can definitely increase the value of your home simply by creating more habitable space. However, you do need to consider whether you will get the return on your investment.

The average cost for converting an attached single garage sits somewhere between £13,000 to £24,000 at the moment. Builders will be able to give you a more accurate price for your specific needs, but the current market conditions (increased labour and supply costs) can mean your quotes could vary widely.

Additionally, it’s important to remember how your conversion could affect how easily your property can be resold. While it may increase the value, lenders may be more hesitant to extend mortgages on some types of properties than others.

Alternatives to mortgages for garage conversions

In addition to looking at mortgages, there are a number of other options available to you which may, ultimately, be a more appropriate route for you to take:

  • Remortgaging you could increase the outstanding amount of your existing mortgage and use the extra for the conversion
  • Home improvement loan – these loans are usually based on your creditworthiness – not any collateral you are putting up.
  • Bridging loan if eligible, this type of loan can help you pay for your conversion, while waiting for incoming funds from elsewhere (potentially another asset sale, for example)
  • Savings – it may take longer, but you could look to save any spare income. Interest rates are starting to increase – earning savers better returns. So, if you can regularly add to your pot of savings, you may find that this is a cheaper option than taking out additional borrowing.

It’s important to note, however, that not all of these options will automatically be viable depending on your circumstances. Speaking with a broker before deciding to apply for any type of loan will be helpful.

Do you need planning permission to turn a garage into a room?

You don’t usually need planning permission if you’re doing this type of conversion under permitted development rights. However, that will be hugely dependent on what you plan to do with the garage and, more specifically, if the conversion affects your floor plan. If it extends out, further than the original garage was, you will need to double check what is required before you start your conversion. Other factors such as where any potential new windows are, or if your home is listed could also mean you need permission.

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