Designed to help landlords and property investors realize their goal of upgrading an existing residential or mixed use property before selling it on to another party or renting out, property refurbishment finance is a type of bridging loan that can be used in a wide range of circumstances.
Property refurbishment loans typically fall into two main categories which are defined by the specific type of renovation work that the borrower is looking to carry out.
Light Refurbishment Finance
This type of property development loan is intended for small scale renovations where the intended use of a building will basically remain unchanged. For example, if a buy to let landlord or a property refurbishment investor is simply looking to borrow a small amount of cash in order to fund basic repairs and simple renovations such as:
If you are looking to refurbish a single property such as a buy to let house or flat, you can typically borrow up to 75% of the expected end value of a project.
However, lenders will consider more complicated refurbishment projects such as multi-apartment office buildings and blocks of flats, although borrowing rates may be higher.
Heavy Refurbishment Finance
If you are looking to carry out any major structural changes to a building which will require planning permission / building regulations then this is known as heavy refurbishment and the lending criteria will change accordingly. However, the rates are still highly competitive provided you know where to turn.
Whether you are a buy to let landlord looking to renovate your first auction property, or you already have an extensive portfolio which you are looking to augment by converting a large commercial building into a block of flats, we can source the most appropriate solution for your needs.
As an independent property development financing company offering fast and flexible borrowing options for investors of all levels of experience, UK Property Finance Ltd. are experts when it comes to providing appropriate funding for all types of property refurbishment.
The rates we offer are always highly competitive and we are also able to provide expert advice and assistance in order to help ensure your loan application is realistic from the perspective of a lender and therefore successful.
Whatever your situation and borrowing requirements, simply give us a call and let our dedicated team of property finance professionals help you realize your ambitions.
Although the Financial Conduct Authority do 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.