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Light and Heavy Refurbishment Finance

What is refurbishment finance?


Refurbishment finance, also known as refurbishment loans, is a range of short-term loans (STLs) that enable you to carry out light or heavy works on an investment property. The type of refurbishment finance you need will be dependent on the type of work that you intend to carry out.

A refurbishment loan is a type of borrowing available for investors and landlords looking to improve a property before selling or renting out. In many cases, the aim is to increase the property’s value in preparation for a re-mortgage onto a buy-to-let or HMO mortgage, or a sale.

The type of works that you are permitted to carry out using a refurbishment loan will be stipulated by the lender. Different lenders will have their own definition of what classes as light or heavy refurbishment. In general:

Heavy refurbishment consists of major structural work costing more than 15% of the property’s value. This work may require planning permission or involve certain building regulations. Heavy refurbishment often consists of conversion works such as the conversion of a single residential property to a House of Multiple Occupancy. They can also include extensions, loft conversions, internal property reconfigurations.

Light refurbishment can include cosmetic improvements to a property, as well as smaller improvements such as rewiring, repainting or installing a new bathroom. Typically works cost less than 15% of the property value. Light refurbishment can also include things like changing fixtures and fittings, interiors and flooring.


Finance can be raised quickly by investors purchasing at auction to swiftly complete the work.

This can increase the value of the property which can then be sold or changed to a mortgage term facility at the higher value in a short space of time.

Who is refurbishment finance for?

Light refurbishments are suitable for landlords with no experience. However, heavy refurbishment STLs are suited for clients with experience.

Refurbishment loans are available for both individual investors and limited companies.

A recent client success:

Clients purchased a derelict property. It had been partly vandalised and needed a full refurbishment. CPC Finance arranged a STL in order to complete the purchase and release additional funds for the refurbishment works to be carried out. The clients successfully completed the refurbishments required. They were then able to re-mortgage on to a term facility.

Refurbishment as part of B.R.R.R.


B.R.R.R. stands for Buy, Refurbish, Rent, Refinance – refurbishment is a key part of this process.

This property investing strategy entails the purchase of a property, adding value through renovation, renting it out and then refinancing onto a term buy-to-let mortgage to extract funds for further investment. This strategy has enabled many investors to grow their property portfolios.

Visit our B.R.R.R. Property Journey page to learn more about this process and examples of projects CPC Finance has completed with clients.


Game Changer

If you would like to undertake a heavy refurbishment project to convert a property into a House of Multiple Occupancy (HMO), but you do not have enough experience – we have a solution for you.

Game Changer is an all-in-one package that means even if you have no previous experience with HMOs, you can become the owner of a newly converted, fully financed HMO.

> Find out more about Game Changer

Top Tips

You will need an exit route in place for your finance. Once refurbishment works are completed, your funding can usually be switched to a term loan if you wish to retain the property to rent out. On the other hand, selling the property can be an exit route.

You can choose between flexible repayment options such as retained, rolled and serviced payments.

View more case studies to see examples of refurbishment projects completed by clients that CPC have helped source funding for.

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

+44 (0)1923 655441