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1. Yes, you will need planning permission to change the use of a building from B1 (industrial use) to D1 (non residential institution use). Essentially, under England planning law, all changes of use require planning permission, unless there is some stated exemption. However, in this case the change from industrial use will need planning permission.
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3. Yes, this is the correct procedure. Essentially this is the first step in completing the process.
4. A lawful development certificate merely certifies that an existing use is correct for the purposes of planning permission. It is not a planning permission itself.
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6. There is no such thing as a "change of use certificate" for a planning permission. An application for permission requires a free standing application to the local County Council. Like a normal planning application. Look for a form for a planning application. There is no separate application type of planning permission for change of use. It is just a simple planning application. I don't know where you are looking but if you need help for a planning application, speak with an architect and get the architect to handle the application on your behalf. The planning requirements for the two different types of use B1 & D1 are very different. So, some thought will have to go into the planning application. There is no certificate or standard application form. You make a fresh free-standing application.
7. This Certificate of lawful development is not sufficient. It does not amount to a planning application. It only deals with your existing B1 use. It does not change it to a D1 use. For this you need a planning application.