Converting a local into your own home is an idea that is on the minds of many people. One of the reasons has to do with the post-pandemic impact, with some businesses closing and many vacant sites. But there are other important explanations related to rising housing market prices or the scarcity of available homes to rent and buy.
Can a commercial space be converted into a residential dwelling?
Converting a commercial space into a residential dwelling is possible if carefully considered, but it is important to remember that there are several legal steps that must be taken before the conversion can be carried out. Both investors and future owners must take these steps into account, as it is not an easy process. It requires consideration of a range of regulations, permits, and renovations.
What is needed to convert a commercial space into a residential dwelling?
The space must comply with the current habitability requirements set by the local municipality, which vary from municipality to municipality and autonomous community to autonomous community. Therefore, it is necessary to be familiar with the local regulations.
However, there are common guidelines. A dwelling is typically considered to have a dining area, kitchen, bedroom, and bathroom, and the usable area must be larger than 40 square meters, with the exception of studios, which can be 25 square meters. Therefore, if the space does not have any of these rooms, renovation is necessary.
Dwellings must be built on urban land, which is usually the norm. Additionally, it is important that real estate regulations do not prohibit this type of operation. The neighborhood or area where the building is located should also not exceed the number of dwellings per hectare.
In general (although additional requirements may be required in some communities), for a place to be considered a dwelling, it must meet the following criteria:
- Have a habitable area of at least 40m2.
- Have a minimum height of 2.5 meters from floor to ceiling.
- Include a smoke exhaust system for bathrooms and kitchens.
- Have a facade with sufficient width to allow for window installation.
- Be located at ground level and not in a basement.
Converting a commercial space into a residential dwelling offers numerous advantages, including economic savings. The cost of acquiring a commercial space can be up to 50% cheaper than that of a residential dwelling. Therefore, after the purchase, there is a greater financial margin to carry out remodeling and cover the taxes related to the change of use from commercial to residential.
However, it is important to consider that, although the price of the commercial space may be more affordable, there are additional expenses associated with the purchase. Thus, the cost of the conversion project and obtaining the habitability certificate can amount to around 3,000 euros, excluding license fees. In summary, the total cost of these operations generally reaches 35,000 euros.
Mortgage conditions for acquiring a converted commercial space into a residential dwelling
In comparison to mortgages intended for the purchase of residential dwellings, higher interest rates are typically applied. Additionally, the granted financing is usually lower, generally not exceeding 60% of the property value. Repayment terms are also more limited, usually not exceeding 20 years.
Converting a commercial space into a sustainable dwelling
The benefit of cost savings in the purchase also extends to the possibility of carrying out sustainability-oriented renovations and energy savings, which result in long-term savings. By implementing proper insulation in the new home, using renewable energy sources for electricity and hot water generation, as well as installing efficient and sustainable climate control systems, energy consumption can be optimized. This results in long-term energy savings and contributes to environmental protection.
Making the most of the space in a converted commercial space
Once it has been verified that the establishment meets all the necessary legal measures and requirements, the construction of the dwelling can proceed. The size of the commercial space will determine the number of rooms and services in the dwelling, as long as it meets the minimum legal requirement of having a dining area, kitchen, bedroom, and bathroom. To avoid errors during the construction process, it is advisable to consult a real estate expert who can provide appropriate guidance and the necessary information to successfully carry out the transformation into a dwelling.
By following these simple steps, it is possible to convert a commercial space into a sustainable dwelling, thereby contributing to the goal of the European Green Deal to achieve environmental excellence in EU buildings by 2050. Additionally, considering the vulnerable situation that many commercial space owners face, this conversion can provide an economic boost to improve their financial situation.
Requirements and procedures for converting a commercial space into a residential dwelling
We have provided a lot of information on how to transform a commercial space into a residential dwelling, but now we will provide you with a step-by-step guide that will be useful in this process. It is crucial to consider the following aspects:
1. Negotiation and acquisition of the commercial space
It is essential that you take into account the square meterage, location, and evaluate the technical feasibility of the project. If you don't have knowledge in architecture, we recommend that you get in touch with a professional who can help you determine if converting the commercial space into a residential dwelling is feasible. Otherwise, you should discard this option and look for alternatives.
2. Mortgage agreement
If you require financing, you will need to approach a banking institution to negotiate the mortgage. It is important to keep in mind that, in addition to the purchase cost, you will need additional funds to carry out the necessary renovations for the conversion, as they will be more extensive than those required when acquiring a conventional residential property.
Therefore, having a detailed budget is essential. We suggest that you get in touch with professionals and suppliers responsible for building the kitchen, bathroom, among other aspects, to obtain a more precise estimation of the necessary budget.
3. Licenses and permits
Once you have developed the project, you will need to submit it to the municipality's town hall. There, you will need to pay the corresponding fees and taxes, as well as apply for the building permit. It will also be necessary to make a declaration of cadastral alteration, so that the property is considered a residential dwelling instead of a commercial space.
After the completion of the renovations, you will need to apply for the certificate of habitability and the energy efficiency certificate. The town hall will grant you the first occupancy license once you submit the final certificate of completion of the works and the change or declaration of cadastral alteration.
🔍Are you looking for properties or do you want to sell yours?
Today we have more than 400 properties for sale in Roses and the Costa Brava
We are members of the College of Real Estate Agents of Girona and we are part of the CBRAI Association: more than 33 professional real estate agents at your service, your property will be for sale in the best agencies in Roses and Empuriabrava.
📲📩 Contact us and we will help you with all the documentation.
•INFO & CONTACT•
📩 ventas@roses.net
📞 +34 972 25 79 99
📲 Only Whatsapp