Are you looking to fund a refurbishment project, either on your residential or commercial property? A new year is a great time to revamp, but if you want to move quickly, bridging finance for refurbishment may be a good route forward. A Bridging Trends report from last year showed that refurbishment was the primary reason people took out bridging finance. This is the first time this report has ever shown refurbishment to be the primary motivation; refurbishment came in at 27%, whilst mortgage delays were cited as the second most common reason.
Clearly, more borrowers than ever before are using bridging finance to fund a refurbishment project. This is a thriving industry, as bridging finance for refurbishment—and indeed, bridging loans in general—become more mainstream. Many of our clients who come to us seeking bridging finance for refurbishment purposes are looking for a quick turnaround with high gearing. You can use this for a full range of projects; whether you want to change the purpose of your building or make internal changes.
How to secure bridging finance for refurbishment
The amount of bridging finance you will be able to secure will depend on the projected value of the property once the refurbishments are complete. If relevant, the anticipated rental income could also affect how much borrowing you can secure. The cost of your facility will depend on the scale of the refurbishment, the end value, and the use of property.
Once your refurbishments are complete, you will likely need to refinance your bridge; this is also something we can assist you with. Our experience throughout the process means we can support your finance journey at every stage.
How else can I fund a property refurbishment? Can I use development finance?
If you are looking to complete a heavy refurbishment – or even step into the world of property development – development finance could be suitable for you. Commercial and Development broker, Callum Taylor, explains more in the video below.
To secure the best rate in a timely manner, you will need to use a broker with good relationships within the market. If you are looking to fund a refurbishment on your property using bridging finance, or want advise on development finance, contact us today for a further discussion and we would be delighted to discuss your options.