Refurbishment bridging: light and heavy works, purchase and build in one loan.
For property that needs work before it can be let, sold or mortgaged. From a new kitchen and a lick of paint to structural conversions, extensions and change of use.
Light or heavy?
Lenders split refurbishment into two boxes, and the box decides the lender, the rate and the paperwork.
| Light refurbishment | Heavy refurbishment | |
|---|---|---|
| Typical works | Kitchens, bathrooms, rewire, replaster, redecorate, windows, boiler. No planning, no structural change. | Extensions, loft and basement conversions, structural work, change of use, conversions to flats or HMO, anything needing planning or building regulations. |
| Works cost | Usually under 15% of the property value | More than 15% of value, often much more |
| Loan basis | Up to 75% of purchase price; works funded from your own money or a modest works facility | Up to 70% of purchase plus 100% of works in stages, capped at 65% to 70% of the end value (GDV) |
| Rate | 0.6% to 0.9% pm | 0.75% to 1.1% pm |
| Monitoring | Usually none | Monitoring surveyor signs off each drawdown |
How the money is released
On a light refurb the loan is normally released in one go at completion and you fund the works. On a heavy refurb the purchase loan is released on day one and the works facility is drawn in arrears: you do a stage of work, the monitoring surveyor confirms it, the lender releases that stage's money. Budget for the first stage from your own cash.
The exit is the whole deal
Refurbishment bridges are repaid by either selling the finished property or refinancing on to a buy-to-let, HMO or commercial mortgage at the new value. Lenders test both. For a refinance they want to see that the end value supports a term mortgage at 75% LTV that repays the bridge in full with margin. For a sale they want comparables. Have these ready and the loan is approved faster and priced better.
What to prepare
- A schedule of works with costs, ideally from the builder who will do it.
- Planning permission or evidence it is not needed, and building regulations position.
- Your experience: photos and numbers from previous projects, if any.
- An estimate of end value with comparables, or an agent's letter.
- Timescale for the works, with contingency. Lenders add three months to whatever you say.
Common structures
Buy, refurbish, refinance (BRR): bridge for 6 to 12 months, then a BTL mortgage at the uplifted value. See our bridge-to-let page, where one lender does both halves. Buy, refurbish, sell: bridge for 9 to 18 months, repaid from sale. Conversion to HMO or flats: heavy refurb bridge, exit to a specialist HMO or multi-unit mortgage.
About the numbers on this page. Rates, fees and loan-to-values are typical market ranges for unregulated bridging in England, given so you can size a deal. They are not an offer. Your terms depend on the property, the exit, the lender and you.
Questions we get asked
Will the lender fund 100% of the works?
On heavy refurbishment, often yes, released in arrears in stages against a monitoring surveyor's sign-off. The overall loan is capped by the end value, typically 65% to 70% of GDV. You still fund the deposit and the first stage of works.
Do I need planning permission before I apply?
For works that need it, lenders will usually want it granted before completion, or will lend on the purchase only and release works money once it is granted. Permitted development is fine but bring the evidence.
Can I do the work myself?
Light works, yes. On heavy refurbishment lenders want a contractor with a track record, or clear evidence that you have delivered similar projects. Self-build with no history is a hard sell.
What if the works overrun?
Tell the lender early. Most will extend for a fee if the project is progressing and the exit still works. Borrow for longer than you expect at the outset; unused months are normally refunded and an extension is always more expensive than the spare months.
Tell us the deal.
A few numbers and a postcode is enough for a first view. Indicative terms cost nothing and commit you to nothing.