Light & Heavy Refurbishment Finance
Refurbishment Bridging Loans
A refurbishment bridging loan funds the cost of buying and improving a property when speed matters more than the lender's tickbox. Whether you're flipping a tired terrace, converting a property to an HMO, or upgrading a buy-to-let between tenants, bridging gives you the cash to complete and renovate before refinancing or selling on.
£200k–£100m+
Loan Size
12 to 24 months
Typical Term
some lenders go to 36 months
Up to 75% LTV
Typical LTV
Key Features
What We Offer
Light & heavy refurbishment funded
Cosmetic upgrades through full structural overhauls, conversions and change-of-use schemes — we match the facility to the scope of works.
Purchase + works in one facility
Day-one advance funds the purchase up to LTV, works budget held in retention and released against the surveyor's progress reports.
Light refurb, typically 5–7 working days
No staged drawdown: funds are released in one tranche. Heavy refurb adds a few days for the staged structure.
Buy, refurbish, refinance (BRR)
Buy below market, renovate to uplift, refinance onto a long-term product at the improved value — extracting your capital.
Repaying early
Where there is an early repayment charge, it is usually three months' interest; very occasionally six; some loans have none.
1st and 2nd charge available
Need to keep the existing senior facility in place? We have lenders who take a clean second charge against the project.
Ideal For
Common Scenarios
Investors flipping for resale
Buy below market, refurb, sell at full value within 6–12 months. Light refurb deals typically complete in 5–7 working days.
Landlords adding to their portfolio
Buy a doer-upper, refurb to lettable standard, refinance onto a buy-to-let mortgage at the post-works valuation.
HMO converters
Buy a 3–4 bed house, convert to a 5–6 room HMO, refinance on the higher post-works valuation. Specialist lenders for HMO conversions.
Auction buyers
Properties bought at auction often need work to be mortgageable. Bridging covers both the purchase and the refurbishment in one facility.
Two Routes
Light vs Heavy Refurbishment
We split refurbishment bridging into two routes. The choice drives both the speed of completion and which lenders compete for your deal.
Light Refurbishment
Cosmetic and non-structural work. New kitchens, bathrooms, redecoration, flooring, light electrical. No planning permission, no building regs sign-off needed. Funds drawn in one tranche.
Bridging rates start from 0.50% a month (first charge, under 50% loan-to-value, straightforward cases) · typically 5–7 working days to complete
Heavy Refurbishment
Structural work, extensions, loft conversions, change of use, anything requiring planning consent or building regs. Funds drawn in stages against works completed.
Priced a step above light refurb · typically 5–7 working days, towards the upper end
Heavy Refurb In Detail
Heavy Refurbishment Finance
What counts as heavy refurbishment. Heavy refurb sits between cosmetic light-touch work and ground-up development. It typically involves one or more of: structural alteration (load-bearing walls, new openings, foundation work), change of use (commercial-to-resi, single-dwelling-to-HMO), planning permission required (loft conversion, side or rear extension, basement dig-out), or a gross development value (GDV) uplift of 15% or more on the post-works valuation. If any of those apply, the deal needs a heavy refurbishment facility rather than a light refurb bridge.
Why heavy refurb sits between bridging and development finance. Pure development finance is geared around build-cost drawdown against a clean planning permission and a programme of works. Standard bridging assumes the property is broadly mortgageable at funding day. Heavy refurbishment finance bridges that gap — the asset is being materially changed, so the lender underwrites both the day-one position (purchase + current value) and the end position (GDV after works), and structures drawdown around interim QS-validated progress. It's a hybrid product, and lender appetite varies sharply with the works profile.
LTV bands typically available. On day one, expect 70–75% of the current open-market value to fund the purchase. The works budget then sits on top, retained by the lender and released in tranches. Total exposure is capped on a loan-to-GDV basis — typically up to 70% LTGDV for clean cases, sometimes 75% with strong sponsor track record and conservative GDV. The implication: borrowers don't always need to fund the works budget from their own capital, but they do need to contribute the GDV gap.
Drawdown structure. Funds release in stages, validated by a Quantity Surveyor or monitoring surveyor instructed by the lender. Typical pattern: 30–40% on completion of demolition and strip-out; further tranches on first-fix electrics/plumbing, second-fix and plastering, kitchen/bathroom install, and final snag-and-completion. The QS visits site to confirm progress before each release. This adds 2–3 working days per drawdown but protects both lender and borrower from cost overrun spirals.
Typical timelines. Bridging terms are most commonly 12 to 24 months; some lenders go to 36 months. Heavy refurb schemes build in time for slippage; schemes that need longer than the bridge allows are usually edging toward needing development finance instead. Exit is normally either sale (flip) or refinance onto a buy-to-let or commercial-mortgage on the post-works valuation — our bridging calculator gives a quick scenario read; for a live scheme, arrange a call.
How It Works
From Application to Completion of Works
Application
Tell us about the property, the works, and your exit (sale or refinance). We do a soft credit footprint at this stage only — no hard search until you're ready to proceed.
Indicative terms
Within 4 hours on straightforward deals, often quicker, with indicative LTV and rate. Indicative terms are a guide, not an offer. Credit-backed terms are an offer from the lender, subject to its conditions.
Valuation
A RICS surveyor values both the current state ("market value") and the post-works value ("gross development value" or GDV). The valuation drives the maximum loan size.
Legals
Your solicitor and ours work in parallel. Straightforward cases typically complete in 5–7 working days, and light refurb without complications often closes at the quick end of that.
Drawdown & exit
Funds released to your solicitor on completion. For heavy refurb, the works budget is held back and released in tranches as the project progresses. You exit by refinancing or selling.
Loan Parameters
Headline Numbers
Loan size
£200k–£100m+
LTV
Typically up to 75% on day one; a few lenders will go higher with additional security. Works funded on top against GDV.
Term
12 to 24 months; some lenders go to 36 months
Rates
From 0.50% a month (light); heavy refurb prices a step higher
Charges
1st and 2nd charge available
ERCs
None after month 3
Common Questions
Refurbishment Bridging FAQ
Can I borrow for both the purchase and the refurbishment?
Do I need planning permission to apply?
What if the works run over budget?
How fast can a refurbishment bridge complete?
Can I exit by refinancing rather than selling?
What is heavy refurbishment finance?
How does heavy refurbishment funding differ from a standard bridging loan?
What heavy refurbishment loan rates are available in 2026?
Real Results
Deals We've Structured
Ready to Discuss Your Deal?
Get an indicative quote or arrange a call with a specialist. If we can respond immediately we will, otherwise we'll call you back the same working day, often within a couple of hours.