Refurbishment finance
Refurbishment finance
Funding for the works as well as the purchase, released in stages against progress on site.
What it is
Light refurbishment, heavy refurbishment, and the line between.
Brief: define the two categories precisely — light is cosmetic and non-structural with no planning; heavy involves structural work, change of use or planning consent — and explain that the label sets the lender panel, the rate and the drawdown mechanism.
[DRAFT] Explain the distinction and why lenders care about it more than borrowers expect.
[DRAFT] Cover how works funding is released: initial net advance on purchase, then staged drawdowns in arrears against a monitoring surveyor or a desktop inspection.
[DRAFT] Explain the cost of retention — interest is normally only charged on funds drawn — and how contingency is treated.
Use cases
The work these facilities fund.
Brief: describe real project types with rough works budgets, not adjectives.
Cosmetic refurbishment
[DRAFT] Kitchens, bathrooms, rewires and redecoration on a tired but structurally sound property.
Structural works
[DRAFT] Removing walls, underpinning, roof replacement and anything requiring building control sign-off.
Loft and rear extensions
[DRAFT] Adding floor area under permitted development or full planning.
Conversion to HMO
[DRAFT] Reconfiguring a family house for room-by-room letting, including licensing implications.
Commercial to residential
[DRAFT] Permitted development conversions and the point at which the lender treats it as development, not refurbishment.
Refurb-to-rent
[DRAFT] Works funded on a bridge and exited onto a BTL term loan once the property is let.
Key criteria
How these facilities are usually structured.
Brief: verify drawdown mechanics and retention treatment against the panel before publishing.
| Measure | Typical position |
|---|---|
| Day-one advance | [DRAFT] Up to 75% of purchase price |
| Works funding | [DRAFT] Up to 100% of build cost, in arrears |
| Maximum loan to GDV | [DRAFT] Up to 70% |
| Drawdown frequency | [DRAFT] Monthly, against inspection |
| Interest treatment | [DRAFT] Charged on drawn funds only |
| Term length | [DRAFT] 6 – 24 months |
The works schedule and your track record move these numbers more than the property does.
Go deeper
Where refurbishment sits between bridging and development.
[DRAFT] Short paragraph explaining that light refurbishment is priced as bridging and heavy refurbishment starts to look like development finance, with links to both.
Questions
The things people ask first.
Got a schedule of works and a target valuation?
[DRAFT] One line asking for the purchase price, works budget and expected end value to get an indicative structure back.
Same working day response.