Refurbishment loans provide finance to property investors, landlords and developers looking to upgrade a tired residential or mixed use property before renting it out or selling it on.

What are refurbishment loans?

If a property is in need of modernisation, reconfiguration, extension or conversion, refurbishment loans provide short-term finance to fund cosmetic or major structural changes. As a Buy-To-Sell or Buy-To-Let solution, borrowers can profit from a tenanted income or an increased value in the property as a result of completed works. Types of conversion include:

  • House to flats
  • Office to residential
  • Residential to HMO
  • Commercial

How is refurbishment funded?

Different lending options, rules and interest rates can support a variety of works. Therefore choice is important! We work with lender panels across the market, so whether your plans involve light refurbishment (internal decorating, kitchen or bathroom replacement), or heavier projects with structural works (extensions, removal or changes to walls), we will be able to find a financial solution for you.

Reducing risk.

Of course, the main goal is to increase property value. And, the better the terms, the less the perceived risk. Very few developers, investors or landlords can afford to achieve this without a structure to their finance. Here are a few planning pointers:

  • Tenanting in time, particularly with ‘Buy-To-Let’ projects (Lenders vary between giving you 30, 60 or 90 days to find a tenant or tenants)
  • Alternative exit plans give peace of mind. (If a tenant can’t be found quickly enough, or selling becomes difficult, other funding options may be required. Seeking the knowledge of a specialist property finance broker would be beneficial to finding a tailored solution)
  • Interest rates and fees vary widely from lender to lender, dependent on the type of property being developed, its state of repair, and applicant circumstances. (Access to our lender panel will highlight the best ones for you!)

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Michael Primrose explains the principles behind Buy Refurbish Refinance (BRR) strategies


Knows his discipline well

We have worked with Michael on two occasions now via a Bridging Loan and a Development Finance package – the fact that we are nearing completion on a third engagement speaks volumes. Michael is highly professional and know his discipline well.

- Michael Breen