The Sunday Times
Get down to business

Converting a commercial property into a home can result in a real bargain, but is it worth the gamble? Cally Law June, 6th 2010

Tim Lawson, 50, managing director of Property Pathfinder, a surveying and property management company in Cirencester, is better placed than most to foresee (the) possible pitfalls. Ten years ago, he took "a calculated risk" with a bakery in Fairford, Gloucestershire. It did not have permission for conversion and, adding to the complication, the owner would only sell it together with a shop next door that had a flat above.

Undaunted, Lawson teamed up with a builder friend who was interested in the shop. Before handing over his cash, he put in a planning application. This was double jeopardy: he had to pay for the application, and there was a danger that the vendor would demand more for the property if it was approved.

Fortunately, the owner played fair. Lawson and his wife, Miranda, now have a five-bedroom, two-bathroom house with a galleried kitchen, valued at £700,000— more than double what it cost them. "It was easier then," he says. "Small shops had no appeal and weren't viable. Now there's more demand and you are less likely to get change of use."

For those keen to follow the Lawsons' example, auctions are a good place to start, although you should keep your eyes open for empty shops or work­shops. Estate agents may be able to help.