Property Refurbishment

What is a Property Refurbishment?

We can source “light” and “heavy” refurbishment loans.
This is normally a short-term loan product from a bridging or specialist buy-to-let lender.

How does it work?

The loan is secured by property, normally the property that the work is happening on, but if this is already mortgaged then another suitable property may be considered.
In theory you can borrow up to 75% of the property value but unless the works are very significant, 30-40% loan to value should be plenty, and the lenders will want to know how you are spending the money.
The exit from the loan will be from either the sale or refinance of the property – refinance means taking out a mortgage on the property such as a buy-to-let loan or commercial mortgage, we can source this for you.

Considerations

For larger advances you’ll need to provide a build schedule which details the planned works, timescales and costings and the lender will want to ensure that the contractor has the experience to get the job done on budget and on time.
You will need a planned exit, this could be sale but if you need to find a buy-to-let post works we can help you with this – this will be based on a new value which acknowledges the works undertaken.
Most people find work always takes longer and costs more than anticipated, it could be worth borrowing what you require plus a 10% contingency.

Light Refurbishment Loans

Suitable for many “doer-up” projects.
Designed for non-structural works: e.g. redecorating, plastering, rewiring, replacing kitchens and bathrooms, replumbing etc.
Windows, doors.

Heavy Refurbishment Loans

Structural work, extensions, work that requires planning permission, work that is possible under permitted development.
Work that changes the classification of the property e.g. standard house into an HMO.

Costs

Arrangement fees between 1-2%.
Interest from 0.55% per month.
Legal fees.
Valuation fees.
Some, not all, lenders charge an exit fee at the end of the loan this.

Talk to us

Get Funding

Steve Carter

Nathan Foster / Funding Friends

We worked with Nathan Foster on a complex refinancing deal. He worked tirelessly to deliver a solution, staying positive despite all the bumps in the road, and we ultimately achieved a very successful outcome. I would happily recommend Nathan and Funding Friends to others.

Ross McDonald

Expert Advice and Support from Andrew Robertson

Andrew Robertson was a source of constant support in this process. Always willing to help and advise, he was at the end of a call or email for what seemed 24/7 during this our funding application. Knowledgeable, diligent and thoughtful, he helped facilitate achieving our funding goals and helped us persevere through some tougher challenges. I would highly recommend him and Funding Friends.

Victoria Sylvester

Lisa Walls-Hester was amazing

Lisa Walls-Hester was amazing. Really supportive and clear, and helped a lot to keep everything moving along. Her credible relationships with lenders and knowledge really helped us to find the right lender to work with.

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Funding Friends is a trading style of Funding Friends Ltd, registered in England No. 12693505

Funding Friends Ltd is authorised and regulated by the FCA No. 935775

Funding Friends is a member of the NACFB registration number 28750

Funding Friends operates as a commercial finance broker and is not a lender. Any finance or products arranged through Funding Friends is entered into entirely at your choice and is at your risk, and you are advised to consult qualified professionals outside of Funding Friends to make the right decision for your needs and circumstances. Your property or other assets may be repossessed if you do not keep up repayments on any debt secured against it. Funding Friends may receive a commission or finder’s fee for effecting introductions to lenders or third parties.