Property refurbishment finance for investment purposes is often divided into 2 categories, light and heavy.

Heavy Refurbishment is defined by the works being undertaken costing more than 15% of the property value. Finance for heavy refurbishments is on a Short Term Loan (STL) basis.

Typical uses of heavy refurbishment finance are for:
  • Extensions
  • Loft conversions
  • Internal reconfigurations
  • Change of use like converting single dwellings to flats
Key features of the finance can vary, but are typically:
  • Up to 70% LTV (Loan to Value)
  • No early redemption charges
  • No minimum term lengths
  • Up to 18 month term
  • Loans from £75k to £10m
  • Finance can be used for purchases (e.g. for auctions)
The borrower is:
  • Usually expected to be experienced in refurbishment, or
  • Currently own 2 investment properties

Once the heavy refurbishment is completed, the finance can usually be switched to a term loan if the client wishes to retain the property to rent out.

Some lenders on our panel also allow for discounts on the margin for any returning customers. This means that a cheaper product may be available by switching to a term loan with the same lender

Note that whilst rates and terms are correct at the time of writing, they can change. Contact us for the latest situation.