Converting Old Concrete Garage

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Hi all,
What are your thoughts on potentially converting this old garage into a mini granny annex? (see attached photo)
Roof looks like asbestos and those concrete panel/block walls leave much to be desired.

Knock it down or upgrade it?; I’m not sure how those panel walls compare with masonry type for dry-lining suitability. Furthermore, the garage is right on the boundary which means it’ll have to be non combustible materials. I need to measure it but it looks like it does not go over the 15m2 limit for structures within 1m of the boundary.

Garage is also in a conservation zone so will need planning application regardless... it’s totally redundant in context of the site nowadays as you wouldn’t be able to get a car within 20 meters of it!
 

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Not suitable IMO walls would require loads of thick insulation to meet any standard at all, I doubt the floor has a DPM the walls will have no DPC, Asbestos, non opening windows the list goes on. I imagine the planning office would have a fit.
Remove it and start again so granny is safe and warm.(y)
 
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