Property Refurbishment Finance

Property Refurbishment Loans

Bridging loans are used to cover the refurbishment costs of residential or commercial properties. 

These loans are short-term, and designed primarily for property investors, landlords and property developers who would like to renovate or convert a property before either renting or selling.

Here at Hunter, we specialise in development finance, using our expertise and knowledge to provide you with solutions that are best for you.

Call us today to discuss your eligibility for a loan: 01825 749 721.

There are two types of refurbishment loan:

Light refurbishment loan:

• These are available for interior renovations
• Individuals, investors, companies, pensions and trusts can have a light refurbishment loan
• The work carried out can be completed by the loan applicant or a contractor

Heavy refurbishment loan

• Heavy refurbishment constitutes any structural renovation to the property. This usually requires planning permission or involves a change to the property’s use
• This type of renovation loan is short-term and available on residential and business premises
• Heavy renovation loans are usually offered to borrowers with existing experience in either light or heavy refurbishment projects
• Includes extensions, extra rooms, as well as all work that comes under light refurbishment

What are the considerations?

When deciding upon whether or not to apply for a refurbishment loan, there are a number of things to take into account.

There are a number of benefits to taking out a development loan with us:

• Properties that are uninhabitable or in a state of disrepair are accepted
• Up to 75% Loan To Value (LTV)
• Interest rates and whether interest can be rolled into the loan
• Exit strategies are considered
• Security is considered
• Up to 100% refurbishment costs covered
• Loans between £100,000 and £2.5 million. Learn more here.

How much can I borrow?

Property refurbishment funding can be calculated in the following ways:

1. As a fixed percentage of the LTV: This will cover up to 75% of LTV, and typically, the lender fee is 2%
2. Fixed LTV percentage AND refurbishment costs: This will cover up to 70% of LTV and 100% of renovation costs. The lender fee is 2%.

Learn more about how much you can borrow with us here.

What is involved in the application process:

Property renovation finance is quickly processed, taking between 5 days and 2 weeks.

When applying for either a light or heavy refurbishment loan, you will need to provide:

• Information regarding your current financial circumstances
• A list of assets and liabilities (if applicable)
• Information about the property you want to purchase or refinance
• Outlines of the planned work on the property estimated timeframe and costs
• Property estimation (after completed renovation work)
• Your experience (if any) in property development projects
• A detailed and planned exit strategy

See: Loan Application Checklist.

Refurbishing your home or a property in your portfolio is an attractive investment option as extensions and renovations can significantly increase the value and profitability of a property.

For over a decade, we have been helping investors climb the property ladder by offering development finance solutions.

Enquire now, or call us today on 01825 749 721 to discuss the opportunities available to you.

You may also be interested in:

• Commercial mortgage
• Construction Finance
• Property Development loans
• Bridging loans
• Re-bridging loans

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