Heavy Refurbishment Finance
Structural works, extensions, HMO conversions and change of use ” funded in staged drawdowns against certified progress.
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No upfront fees · Business enquiries only · Min. £25,000
What is Heavy Refurbishment Finance?
Heavy refurbishment finance funds significant structural works, extensions, loft conversions, HMO conversions, change of use and any project requiring planning permission or building regulations approval. Unlike light refurbishment, heavy refurbishment loans typically release funds in staged drawdowns verified by an independent monitoring surveyor, reflecting the greater complexity and cost of works.
- Structural works, extensions and loft conversions
- HMO conversions and re-configurations
- Change of use projects (with planning)
- Staged drawdowns against certified works
- Monitoring surveyor appointed for larger projects
How Does Heavy Refurbishment Finance Work?
Initial Advance
An initial sum is advanced at the start of the project ” typically against the purchase price or current value. This funds site acquisition and initial works.
Staged Drawdowns
Further funds are released in arrears as works are completed and certified. For larger projects, an independent monitoring surveyor signs off each stage before drawdown.
Works Completion
All planned works are completed. A final inspection by the surveyor confirms practical completion.
Exit
The bridge is repaid via sale of the refurbished property or refinance to a term mortgage, buy-to-let or commercial product.
How is Heavy Refurbishment Finance Secured?
Heavy refurbishment finance is secured by a first charge over the property. The lender values the current as-is value and projected post-works GDV. Drawdowns are structured so lender exposure remains within acceptable LTV limits at each stage.
Exit Strategy
All lenders require a credible exit strategy before funds are released. Common exit routes include:
- Sale of the completed refurbished property
- Refinance to a buy-to-let mortgage once habitable and tenanted
- Refinance to a specialist HMO mortgage after licencing
- Refinance to a commercial or semi-commercial mortgage
- Portfolio refinance across completed units
Is Heavy Refurbishment Finance a Good Idea?
Advantages
- Enables transformation of significantly distressed or unmortgageable property
- GDV-based lending allows access to more capital than current value alone
- Stage release protects borrower cash flow during works
- Suitable for HMO, conversion and change of use strategies
Considerations
- More complex and slower than light refurbishment lending
- Monitoring surveyor adds time and cost
- Planning and building regulations delays extend bridge term
- Cost overruns require contingency provision or additional equity
How to Secure Heavy Refurbishment Finance
Obtain Planning Consent
Where required, secure planning permission or permitted development rights before applying. Pre-planning bridging is available in some cases.
Prepare a Schedule of Works
A detailed schedule from a qualified contractor with costs broken down by stage is required for larger projects.
Appoint Professionals
An architect, structural engineer and (where required) building regulations inspector add credibility and reduce lender risk.
Submit Enquiry
Share the property details, schedule of works, planning status and exit strategy. We identify lenders experienced in heavy refurbishment.
How Much Can I Borrow?
Loan amounts are based on the post-works GDV with most lenders, enabling higher advances than current-value-only lending.
- Up to 70“75% of post-works GDV with specialist lenders
- Day-one advance: up to 70% of as-is value
- Minimum loan: £100,000 for most heavy refurbishment lenders
- Larger projects up to £10m+ considered
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How Quickly Can I Get a Loan?
Initial drawdown typically completes within 2“4 weeks from application. Subsequent drawdowns follow each monitoring surveyor inspection, usually every 4“8 weeks during active construction.
Eligibility Criteria & How to Apply
- UK-based investor, limited company or LLP
- Property requiring structural or planning-related works
- Schedule of works with costs from qualified contractor
- Planning permission or PD rights in place (where required)
- Credible post-works exit ” sale or refinance
- Adverse credit considered on merit
- Minimum loan £100,000
9 Example Uses of Heavy Refurbishment Finance
Loft Conversion
A Victorian terrace gains a loft conversion ” planning approved. Bridge funds the purchase and works; BTL mortgage refinances the completed 4-bed house.
HMO Conversion
A 5-bed house is converted to a licensed 7-bed HMO. Bridge funds purchase and works; specialist HMO mortgage refinances on licencing.
Rear Extension
A 2-bed cottage is extended to create a 4-bed family home. Bridge funds works; sale at uplift repays.
Structural Repair
A property with serious damp and structural issues is unmortgageable. Heavy refurbishment bridge funds remediation; standard mortgage exits.
Basement Conversion
A London property gains a basement conversion. Planning approved; bridge funds excavation and fit-out.
Commercial-to-Residential
A former shop with planning is converted to 3 flats. Bridge funds acquisition and conversion; BTL mortgages refinance completed units.
Derelict Property
A derelict farmhouse with planning for renovation is acquired and fully restored. Specialist lender assesses post-works GDV.
Portfolio Strategy
A landlord acquires 4 properties simultaneously for HMO conversion. A portfolio bridge funds all 4 with staged drawdowns.
Adverse Credit Developer
A developer with historic IVA has a strong track record and credible scheme. A specialist lender focuses on the asset and exit.
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