Property Finance
Refurbishment Finance
Short-term funding for light and heavy refurbishment projects. Funds advanced against the purchase price and released in stages as works complete.
Refurbishment finance bridges the gap between a property's current condition and its post-works value. Lenders advance an initial sum against the purchase price (or current value for existing holdings) and release further tranches as refurbishment milestones are reached and inspected. This structure manages lender risk while ensuring funds are available as costs arise — without the borrower needing to self-fund the full works upfront.
Light vs Heavy Refurbishment
Light refurbishment covers cosmetic works not requiring planning permission — redecoration, new kitchen, bathroom, flooring. Heavy refurbishment includes structural works, extensions, change of use or anything requiring planning or building regulations approval. Different lenders specialise in each, and terms vary accordingly.
Tranche-Released Funding
Further advances are released by the lender's monitoring surveyor once inspected works are signed off. This keeps costs manageable and ensures lender exposure tracks actual progress.
GDV-Based Lending
Many lenders will lend against the projected gross development value (GDV) post-refurbishment rather than the current value, enabling higher advance amounts for projects with significant uplift.
Exit to Term Mortgage or Sale
The typical exit is refinance to a buy-to-let or commercial term mortgage once works complete and the property is tenanted or sold. We can introduce suitable term lenders at the appropriate stage.
Suitable For
- Buy-to-let investors refurbishing before letting
- Flip investors purchasing, refurbishing and selling
- Landlords bringing uninhabitable property to lettable standard
- Investors undertaking heavy structural works or change of use
- Developers completing light refurbishment on smaller schemes
- Borrowers with adverse credit but solid refurbishment track record
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