Traditional mortgage lenders require properties to be habitable with all the necessary amenities before lending. If you are looking to purchase or refinance a property with no bathroom or kitchen, or in need of significant works before being habitable, or indeed if you are planning to carry out significant works, then a refurbishment bridging finance can be utilised.

What is Refurbishment Bridging Finance used for?

This type of bridging loan is often categorised by the extent of works required, into “Light Refurbishment” and “Heavy Refurbishment” categories. Generally, heavy refurbishment involves a change of use or configuration of the building, perhaps requiring planning consent and/ or building regulations approval.

• Light Refurbishment

A light refurbishment project is where the property only requires a small or cosmetic upgrade. This typically includes a new bathroom, kitchen or perhaps redecorating.

• Heavy Refurbishment

Heavy refurbishment involves some form of structural change, or a requirement for planning permission, or Building Regs sign-off, and also Permitted Development conversion projects. This can include adding an extension or a loft conversion, or an internal re-configuration where walls are removed. If planning permission is required for any of the works, it is likely to be considered a heavy refurbishment.

We can arrange a facility to cover the cost of the works in addition to a percentage of the purchase price if a significant amount of works are required.

What are the Key Features of Refurbishment Bridging Finance?

• Typically up to 75% (or even 80%) Loan to Value towards the purchase, then 100% of costs in arrears, subject to 70% of the finished value of the property.

• 100% funding available, with additional security.

• Interest rates from 0.4% per month.

• Loan Terms from 1 month to 24 months.

• Loans from £50,000 to £100m.

• Options with no Exit Fees.

• Rolled up, retained or deducted interest options available.

• Staged payment facilities are available.

What are the Refurbishment Bridging Finance lending criteria?

• Light and Heavy Refurb Products available.

• First and second charge lending.

• Planning consent needs to be in place.

• Loans with no PG’s available.

• Lending in England, Scotland, Wales, Northern Ireland and Eire, and even selected European destinations.

• Experience is not essential but does allow access to cheaper rates.

• Adverse credit can be considered if the exit strategy is a via sale.