Light refurbishment
Decoration, kitchens, bathrooms, flooring and other improvements that do not normally require structural work or planning consent.
Often assessed within a standard bridging or light refurbishment product.UK property refurbishment finance
Refurbishment finance lenders UK
Find lenders suited to the property, planned works, project costs and value after refurbishment. DealFunder compares your enquiry with lender criteria and creates a credible shortlist.
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Choosing the right product
The level of work changes the lender
Refurbishment finance ranges from a simple cosmetic bridge to a development style facility with staged drawdowns. Lenders define light, medium and heavy works differently.
DealFunder considers what work is planned rather than relying only on the label. Structural changes, planning requirements, project costs, experience and the intended exit can all affect lender eligibility.
Types of refurbishment
From cosmetic improvements to structural work
Medium refurbishment
More extensive internal changes, services, layout alterations and works that sit beyond a simple cosmetic upgrade.
The lender may require a schedule of works, cost breakdown and monitoring.Heavy refurbishment
Structural alterations, extensions, major conversion, significant demolition or work requiring planning permission or building control approval.
Usually assessed using development style leverage, experience and drawdown controls.Figures lenders need
Show the deal before and after the works
The agreed price when the property is being acquired.
The value before works, including where the purchase is below market value.
The complete works budget including labour, materials, professional costs and contingency.
The realistic expected value when the works are complete.
Required when refinancing or raising capital against a property already owned.
The requested amount or confirmation that the maximum available facility is sought.
What lenders assess
More than the cost of the works
- Borrower and project experience
- Planning and building control position
- Schedule of works and contractor
- Loan to cost and loan to value
- Contingency for unexpected costs
- Timescale and exit strategy
Common questions
UK refurbishment finance
What is refurbishment finance?+
Refurbishment finance is short term property funding used to buy or refinance a property and complete improvement works before sale or longer term refinancing.
Can a lender fund the purchase and refurbishment costs?+
Some lenders can fund part or all of eligible works costs within their overall leverage limits. The structure depends on the purchase price, current value, costs, value after works and borrower contribution.
How are refurbishment funds released?+
Light works may be included within the initial facility. Larger projects are often funded in stages after work is completed and inspected. Each lender uses its own drawdown and monitoring process.
Do I need planning permission?+
Cosmetic work may not require planning permission. Structural changes, extensions or a change of use may require planning consent or permitted development approval. The lender will need the correct position confirmed.
Can a first time developer obtain refurbishment finance?+
Yes, some lenders accept first time developers for manageable projects. They may assess relevant property experience, the contractor, professional team, available contingency and the proposed exit.
What exit strategy can I use?+
Common exits are selling the improved property or refinancing onto a buy to let, commercial mortgage or other longer term facility. The lender must be satisfied that the exit is realistic.
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