Refurbishment Finance Mortgages

Arranging funding for property refurbishments, conversions, extensions and reversions is a fun market for us.

Time scales are fast, gearing needs to be high and margins need to be closely monitored.

Then there is the re-financing once the property becomes habitable, either until it sells or while it rents, and finally getting the profit out to reinvest into the next project.

Whether this is your first or hundredth project, no matter your circumstances, let us help raise you the funds you need.

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Bridging Loans for Refurbishment Projects

Perhaps you simply want to put a fresh façade on your property, or change the purpose of the building entirely. Maybe you’re looking to update your internal fittings, or add an extension. Many landlords look for short-term funding to allow them to do up a property before letting it out.

Whatever the reason, getting the right financing in place for refurbishments is important. Although it’s a thriving sector, it is hard to secure mainstream refurbishment financing. That is why it so important to secure the help of a broker like Enness.

Generally, the loan amount will be based on the projected value of the property post-refurbishment and, if relevant, the anticipated rental income. The cost varies depending on scale of refurbishment, the end value, and the use of property.

Some lenders will lend a percentage of the purchase price and leave you to complete the refurbishment, whereas others will lend a percentage of the property value as well as a set amount of funds needed to finish the works. Some lenders will lend a percentage of the end value of the property as a whole.

Some lenders differentiate between ‘light’ and ‘heavy’ refurbishment, depending on the cost of the works as a percentage of the property’s value, or whether or not planning permission is required.

Overall, lenders can be flexible with their lending terms, but you can usually only secure these products through a whole-of-market broker with access to every type of lender.

Although experience in property development is helpful, there will still be some options available if you don’t have any.

Having previously been involved in developing some of the first rolling property refurbishment products since the 2008 financial crash, we have continued to help shape this area of the market since and established an excellent reputation as a result.