Funding For Light, Medium & Heavy Refurbishment Projects, HMO Conversions and Use Class Changes

Refurbishment finance is short-term, property-secured funding designed to cover the purchase (or refinance) of a property and the cost of renovation or conversion works, with lending assessed against both the current value and projected value after works (GDV).

It’s built for investors and developers who are actively adding value and need speed, flexibility and higher leverage than a standard mortgage can offer.

Typical Structure

• Security: Secured against the property being refurbished or converted.
• Term: 6 – 18 months (up to 24 months in some cases).
• Rate: From 0.63% Per Month
• LTV: Up to 85% of day-one value and up to 75%+ of GDV, with many lenders funding 100% of works.
• Interest: Commonly rolled up (no monthly payments), preserving cashflow during the project.
• Drawdowns: Works funds released in stages, or advanced upfront on lighter refurb projects.
• Loan sizes: Typically from £100,000 with no fixed upper limit.
• Early repayment: Frequently allowed without exit penalties.

When It’s Used

Refurbishment finance is suited to projects where value is created through works, including:

• Light and heavy residential refurbishments
• HMO conversions
• Commercial-to-residential conversions
• Mixed-use upgrades
• Value-add flips prior to refinance or sale

What Lenders Focus On

The strength of the exit strategy is critical. Repayment is typically via:

• Sale post-refurbishment
• Refinance onto a term mortgage or buy-to-let
• Refinance into longer-term investment finance

A credible build schedule, realistic costs, and evidence-based GDV are essential. If the uplift or exit is weak, the deal won’t stack.

How We Add Value

Every refurbishment lender has different appetite, leverage models and risk tolerances. We structure funding to maximise leverage against day-one value and GDV, ensure works funding aligns with the build programme, and present a robust lender-ready case to secure fast approvals