Refurbishment Bridging Loans
Short-term property finance for refurbishment projects. Lending typically based on the property’s current value, with potential staged releases as works progress.
What Is a Refurbishment Bridging Loan?
A refurbishment bridging loan is short-term secured finance designed for properties that require renovation or improvement before being refinanced or sold.
Unlike traditional mortgages, bridging lenders may consider properties that are currently unmortgageable due to condition, layout or required works.
How Funding Is Structured
In many cases, lending is assessed against the current value of the property.
Where appropriate, additional funds may be released in stages as refurbishment works are completed and verified.
Typical Structure
- Initial advance based on current value
- Agreed schedule of works
- Monitoring or inspection reports
- Staged drawdowns (subject to approval)
All staged releases are subject to underwriting, valuation and monitoring requirements.
Types of Refurbishment Projects
- Light cosmetic renovation
- Structural improvements
- Conversion projects
- Change of use (subject to planning)
- Unmortgageable property remediation
Heavy vs Light Refurbishment
Light refurbishment may include cosmetic works such as kitchens, bathrooms and decoration.
Heavy refurbishment may involve structural works, extensions or significant alterations.
Each case is assessed individually based on scope, timeline and exit strategy.
Exit Strategy
A clear exit strategy is fundamental to all bridging finance.
Typical exits include:
- Refinance onto buy-to-let mortgage
- Refinance onto residential mortgage
- Sale after refurbishment
How Quickly Can It Complete?
Completion timelines depend on valuation access, legal readiness and project complexity. In many cases, bridging finance may complete within 7–21 days.
Frequently Asked Questions
Can I borrow based on the property’s future value?
Lending is typically based on the current value. In some cases, staged drawdowns may be considered as works are completed and verified.
Do you fund heavy refurbishment?
Projects involving structural or significant works may be considered subject to scope, experience and exit strategy.
Is planning permission required?
Where planning is required, appropriate approvals must usually be in place before funds are advanced.
Planning a Refurbishment Project?
Share the property details, scope of works and exit plan — we’ll advise whether a structured refurbishment bridging loan may be suitable.
Worked Example – Refurbishment Bridging Loan
Scenario: Purchase and refurbishment of a residential investment property.
- Property purchase price: £565,000
- Initial advance structured against current value
- Agreed refurbishment budget: £70,000
- Works timeline: 3 months
The initial bridging facility was completed to enable acquisition of the property.
Following completion of agreed refurbishment works, an inspection was undertaken.
After verification that works had been completed in line with the agreed schedule by a RICS surveyor
an additional £70,000 was released as a staged drawdown.
The borrower’s exit strategy was refinance onto a longer-term buy-to-let mortgage following completion of works.
Illustrative example. All lending subject to underwriting, valuation and monitoring.