Bridging · Refurbishment

Refurbishment bridging finance

Funding to acquire a property and pay for the works that add value to it — from a cosmetic refresh to a structural reconfiguration or change of use.

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How refurbishment bridging works

A refurbishment bridge funds the purchase of the property on day one and then releases further money for works, usually in arrears against a monitoring surveyor’s sign-off. Some lenders will lend against the expected value once the works are complete, which can significantly reduce the cash you need to put in.

Lenders split projects into light and heavy refurbishment. Light works are cosmetic or non-structural — kitchens, bathrooms, decoration, rewiring. Heavy works involve structural change, extensions, conversions or anything that needs planning permission or building regulations sign-off. Heavy works attract closer scrutiny, staged drawdowns and a monitoring surveyor.

Typical uses

Modernising a tired residential block for sale or let
Converting a house into flats or an HMO, subject to planning and licensing
Commercial-to-residential conversions under permitted development
Upgrading a commercial building to improve its energy rating and rental value
Reconfiguring a mixed-use building to create additional units

What lenders will look at

A detailed schedule of works and costings
Planning and building-regulations position for heavy works
Your contractor and the experience of the team delivering the project
Evidence for the end value, whether that is sale comparables or rental demand

Questions

Frequently asked questions

What counts as heavy refurbishment?

Broadly, anything structural, anything requiring planning permission or a change of use, and projects where the works cost is large relative to the property value. Each lender draws the line slightly differently, which affects pricing and whether a monitoring surveyor is required.

Do I have to fund the works myself first?

Often the first tranche of works is funded by the borrower, with the lender reimbursing costs in arrears once a surveyor has confirmed the work is complete. Some lenders release funds in advance for the first stage. We will explain the drawdown profile of each option before you commit.

Can the loan be based on the value after works?

Some lenders will size the facility against the gross development value — the expected value once works are finished — subject to a cap on the day-one advance. This can reduce the equity required, but it depends heavily on the quality of the valuation evidence.

What if the works overrun?

Build in contingency from the start and choose a term with headroom. If a project does overrun, an extension or refinance is often possible, but it is far easier to negotiate before the term expires. We stay involved after completion for exactly this reason.

Have a bridging deal in front of you?

Send us the headline numbers. We will tell you plainly whether it is fundable, how we would structure it, and what we would need to take it to lenders.

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