Property Refurbishment Finance

Property refurbishment finance is specifically designed to provide developers and property investors with funding for the sole purpose of upgrading existing residential and mixed-use properties for resale or placement onto the rental market. A property refurbishment loan is a type of bridging finance that can be used for a range of purposes.

Property refurbishment finance can be divided into two main categories depending on the specific type of upgrading to be carried out.

Light refurbishment finance

This type of funding is for small upgrades and renovations that do not require any serious structural changes to the property. It is specifically for small-scale jobs where the intended use of the building will remain unchanged. Typically, a light refurbishment loan is a funding product offered when the borrower only requires a relatively small amount of cash to make the necessary upgrades.

Common uses of light refurbishment finance include:

  • New kitchen or bathroom installation
  • Plumbing and heating
  • Re-wiring and other electrical work
  • Plastering
  • Decorating

For single-property refurbishment, you can expect to be able to borrow up to 75% of the expected end value. However, for development projects with multiple units, you may be able to borrow more, but interest rates may be higher.

Heavy refurbishment finance

Heavy refurbishment finance is for developers who are looking to make structural changes to a property that will require larger sums of money and usually will also need planning permission or building regulations, such as an extension or a loft conversion.

Funding a refurbishment project

UK Property Finance Ltd. is a ‘whole of market’ brokerage company, meaning we have access to all the best deals when it comes to funding your refurbishment project. Whether you are a newbie to the property development world or you have an extensive portfolio of previous successful projects, we can source the perfect funding solution for you.

We can source fast and flexible borrowing options for investors with all levels of experience and all types of property refurbishment.

We will find the best rates available on the market and can provide expert advice and assistance in order to help ensure your loan application is realistic from the perspective of a lender and therefore successful.

Important information

Although the Financial Conduct Authority does not regulate buy-to-let or commercial mortgages, we ourselves are FCA-approved when it comes to delivering advice and handling refurbishment financing applications. We are also fully accredited members of the Association of Bridging Professionals and the NACFB.

It is also important to remember that any property offered as security on a property development loan will be at risk if the repayments are not made on time.