01923 655441    investors@cpcfinance.co.ukListen To Our Podcast

Light and Heavy Refurbishment Finance

What is Refurbishment Finance?

There is a range of short-term loans (STLs) available which will enable you to carry out light or heavy refurbishment works on an investment property. The type of refurbishment finance (loan) you need will depend on the type of proposed works to be carried out.

Each lender has its their own definition of light or heavy refurbishment but as a rule of thumb:

Heavy refurbishment constitutes major structural work, costing more than 15% of the property value, which could need planning permission or involve certain building regulations.

Light refurbishment works cost less than 15% of the property value. These can include cosmetic improvements to a property and smaller work such as rewiring, repainting or installing a new bathroom.


Investors can raise finance quickly to do the works, increase the value of the property and then sell on or change to a mortgage term facility at the higher value.

Who is Refurbishment Finance for?

Light and refurbishment STL are suited for landlords with no experience. However, heavy refurbishments are most suited to landlords who have experience.

A recent client success:

Clients purchased a derelict, partly vandalised property in need of a full refurbishment. CPC Finance arranged a short term loan in order to complete the purchase and release additional funds for the refurbishment works to be carried out. The clients completed the refurbishments required and re-mortgaged on to a term facility.

Top Tips

You will need an exit route in place for the finance. Once the refurbishment is completed, it can usually be switched to a term loan if you wish to retain the property to rent out. Alternatively, the exit route can be to sell the property.

Flexible repayment options are available to allow you to choose between retained, rolled and serviced payments.

Visit our case studies page to see examples of refurbishment projects by CPC clients.

Get in touch today to discuss your refurbishment needs in more detail.

+44 (0)1923 655441