Adding Value Through Creativity: Our Wooler Commercial-to-Residential Conversion
I’ve always said that the best property deals come when you can spot an angle others see as a problem. If you can solve the problem, you create the value. Our latest project up in Wooler is a perfect example.
The Purchase
The property was a tired old building listed on Rightmove at £160–170k. It had been sitting on the market for ages. There was a commercial tenant paying around £600 per month, but otherwise the building hadn’t been touched in years.
When I go out to view something like this, I’m always asking: Where is the angle? Is it a structural issue, a planning issue, or something else that scares other buyers away? Because if you can solve that, you can often pick up a bargain.
We put in two offers. The first was around £150k but on our terms: we’d complete only once we’d secured the planning permission. The second was £100k, but on the seller’s terms: quick completion, no planning conditions, they walk away clean.
Even the agent didn’t think the lower offer would fly. But, to our surprise, it was accepted. So we got the building for £100,000 and with the sitting tenant, that was a 7.2% yield on day one, before touching the upper floors.
Planning Strategy
The building was Class E (commercial), and our aim was to unlock the unused upper storeys and roof space for residential. The complication was that the only way upstairs was through one of the shops.
Our first move was to apply for planning permission to reconfigure the front elevation. We added a central doorway to access the stairwell, with separate entrances for the shops either side. This gave us independence between the commercial and residential elements.
We also spotted the potential in the roof space. Being in a conservation area, the planners weren’t keen on front dormers, but we managed to secure approval for Velux rooflights instead. That planning permission then became the platform for a permitted development application under Class MA (conversion of Class E to residential).
Using that, we secured consent for five holiday-let apartments: two on the first floor, two on the second, and one in the roof space — while retaining the two shops on the ground floor. Later, we went back and got permission for rear dormers to create even more usable space.
All told, the planning phase took about 9–12 months, but because we had income from the existing tenant, the building was covering its own holding costs.
The Build Phase
Going in, I had budgeted roughly £550k for the works. That was based on around £75k per flat, plus some conversion works to the shops. When the quotes came back, the build cost was closer to £450k, which was a pleasant surprise and gave us a buffer for services, furniture, and contingencies.
There was one big design decision mid-way. Originally, we wanted to retain the beautiful king and queen trusses in the loft, strengthening them with steelwork. But once we got into it, it became clear this would be overly complex, slow, and costly. So instead we ripped them out and installed new loft trusses. It cost a bit more in materials, but it was safer, quicker, and more straightforward.
All in, with furniture and the £100k purchase price, we were sitting at around £600–630k invested.
Then Came The Biggest Headache: Services
Where this project really tested us was in the service connections. We had factored in about £16–20k for new electricity and water connections, and we even paid these upfront in July, expecting them to be done within a few months.
What we didn’t know was that Northern Powergrid were in the middle of re-tendering their civils contracts, so they weren’t booking in any new major works. Ours was classed as a major development because of the six new connections and road closures required.
We weren’t told this until months later. By Christmas, I finally discovered — through another department — that they simply weren’t booking any jobs. In the end, we lost around nine months waiting for a civils contractor to be appointed.
That had a knock-on effect: the builders had to move onto other jobs, decorating couldn’t progress, and the whole scheme stalled. Road closures added further delays, with the council unwilling to approve them during school holidays.
This was probably the single biggest learning from the scheme. Even when you think you’ve planned ahead on services, you need to factor in long lead times and big lump-sum payments upfront.
The Finished Result
Despite the frustrations, the project is now complete and trading. The valuation came back at £760k — slightly below the £800k we’d hoped for, as the valuer used a higher yield (14.5%) and conservative income figures for the serviced apartments. Still, that’s above the original GDV in our early appraisals, so we’re happy.
We did miss a summer of holiday-let income due to the delays, but bookings are now coming in and we’ll have a full year of trading next season. With two shops downstairs and five high-quality holiday apartments upstairs, the building has been completely transformed from its dilapidated state when we found it.
Key Learnings
Every project teaches you something. For us, this one reinforced three lessons:
Creativity at purchase is key. By offering on both terms and price, we secured the deal well below asking.
Planning is an opportunity, not a hurdle. By combining full planning with permitted development, we maximised the building’s potential.
Never underestimate service connections. Power, water, and road closures can make or break your programme. Pay early, chase relentlessly, and plan for delays.
In the end, what started as a tired mixed-use building has become a thriving asset in the centre of Wooler. Neighbouring businesses have said it's brought new customers to them also, how's that for reviving the High Street?! And that, for me, is what property is all about: solving problems others walk away from, creating long-term value, and repurposing amazing old buildings in the process.
Feel free to reach out to me any time, pop me a message on:
Instagram:
Facebook: Anthony Boyce
