Rangewell

Refurbishment Finance - We've got a Game Plan for your Master Plan

The right Refurbishment Loan is the key to your project - take the time to talk things through with the experts

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Funding options

£
  • 1 to 36 months
  • £25,000 – No Maximum
  • Monthly rates starting from 0.35%
  • Non-status and full status
  • Interest roll-up schemes
  • Adverse Credit – no problem
  • No Income Proof Required
  • Funding can be available in 5 – 7 business days
  • Funds for any legal purpose
  • Up to 100% Loan to Value available
  • Land purchase or refinance up to 70% of value
  • Commercial, Residential and Land

Speak to real finance experts who really understand the complexities of Refurbishment

Property refurbishment can be lucrative, but buying a property and funding work needs special financial arrangements. We know the lenders who can provide them, and use our contacts to help you secure the deal that's right for you.

At Rangewell we recognise your professional status, and we work harder to find you better solutions - which can include 100% finance for many of your needs.

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Property Refurbishment Mortgages & Loans

For property investors, developers and landlords

Property refurbishment finance is designed to help landlords and property investors upgrade their existing residence or mixed-used property before selling it on or renting it out. It is a type of bridging loan that can be used in a wide range of circumstances. If you'd like to know more about property refurbishment finance, speak to Rangewell today.

All the information you need

Of course, there are some hurdles, with planning rules and building regulations to consider. Careful budgeting is important, too - you need to cover architects and planning fees, specialist contractors, materials and contingencies.

You have enough to do without searching through all the lenders and products available to ensure you get the right financing. At Rangewell, we believe that a specialist Refurbishment Finance arrangement could provide the solution you need.

Needing to refurbish your commercial property?

Contact our team today to find out your options

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What is Property Refurbishment Finance?

Property refurbishment loans are a type of short-term finance secured finance. This type of lending is best suited for property investors, landlords and property developers who are looking to refurbish or convert a property before letting or selling it on. 

If you purchase a property and you extend it or refurbish the interior or exterior, the value could increase significantly, so speak to Rangewell; our experts can provide funding information on all sorts of development work such as conversions and the development of multiple properties under one title. 

Criteria for Refurbishment Finance

A bridging lender typically requires collateral in the form of property. Loans can be secured on one property of the several properties combined. The lender and borrower will enter into an agreement where the service provider will take control of the property if the loan is not repaid. Read on to find out more about the criteria for bridging loans. 

The lending market can be overwhelming, and fees, charges, and interest rates can all vary slightly depending on one provider to the next. This means the lending criteria does, too.

Rangewell works with a large panel of lenders, and we can provide our customers with: 

Loan sizes: Bridging loans are available up to any value 

Term: Most lenders in this sector lend up to 18 months, though some may offer 36 months. 

Security: The lender and borrower will enter an agreement whereby the service provider will take ownership of the property if it is not paid. The loan is secured by the lender taking charge of the property.

Location: Our lenders can arrange loans for applicants anywhere in the UK 

Age of applicant: All of our service providers will impose a minimum age limit of 18 years. Some lenders may impose a maximum age limit too. 

Credit history: Bridging loans can be useful for those with 

  • CCJs
  • Defaults
  • Arrears
  • IVAs
  • Bankruptcy
  • Repossessions 

Income Evidence: Bridging lenders do not collect staggered payments on a monthly basis, so evidence of income may not be required.

Loan use: A bridging loan can be put to use for any of the following:

  • Funding restoration and renovation work
  • Injecting cash into a new business or purchasing an existing business
  • To cover some or all costs of the development project 

Interest payments: Unlike a conventional loan or mortgage, interest is typically added to a bridging loan in one lump sum which is paid in full when the loan itself is repaid. 

How much can I borrow?

Most lenders will provide loans of up to 75% of the post-refurbishment value. It is sometimes possible to qualify for higher, but a sizable deposit will be needed alongside a good credit history. Speak to Rangewell today to find out more!

Looking for a higher LTV than 75%?

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Light or heavy refurbishment?

Refurbishment Loans are available for both light and heavy refurbishment.

Light refurbishment

If a property simply needs redecorating, rewiring or relatively minor changes, such as a newly fitted kitchen or bathroom, this can be arranged through a Light Refurbishment Mortgage, which may cover both purchase or the works alone. Light Refurbishment Mortgages are ideal for developers looking to refurbish a property as an investment, especially those properties where a conventional mortgage might not be available because of the condition.

A light refurbishment property should be currently habitable with working utilities. The work required should not require any planning permission approvals or structural work that requires building regulations approval.

There should not be any change to the use of the property. If the works require a change of use, for example, converting offices into flats, or any structural works requiring consent from the local authorities, this would be considered a heavy refurbishment project and would require a heavy refurbishment mortgage.

Heavy refurbishment

Heavy Refurbishment Mortgages allow experienced property developers and investors to fund both the purchase of a property needing work and the funds to carry out the refurbishment required.

The refurb may include conversion of a single building into multiple letting units, such as self-contained flats or a multi-tenancy home of multiple occupation (HMO), where reconfiguration may be necessary.

With heavy refurbishment, the lender will want to see a schedule of works.

This is a detailed breakdown of the work and costs involved in the project, together with projected timings. A valuer will comment on whether the intended budget is realistic and if the time scale is achievable. Lenders may also want to see evidence of your past projects, to ensure that you have the skills and vision to complete the work.

How does Property Refurbishment Finance work?

Refurbishment Finance is based on the gross development value (GDV), the value of the project once completed. This is also known as the post refurbishment works value.

Loans may available from £100k to £10m. Lenders may consider lending up to 70% of GDV, with funds released in stages. These funds may cover both the property purchase as well as refurbishment works, although funds may also be available for developers who already own a property in need of work.

Terms of up to 18 - 24 months are available, and interest payments may be rolled up in the total loan amount.

As with all property finance, there will also be fees:

  • Arrangement fees: These are charged by the lender for arranging the loan and are typically 1.5% to 2% of the loan amount.
  • Exit fees: Not all lenders apply exit fees - those that do may charge a percentage of the loan amount or, sometimes, the gross development value.
  • Valuation fees: Lenders will instruct a surveyor to value the property both before and post refurbishment works. The scale of these fees will depend on the size of the project.

What information is needed for a refurbishment loan?

When looking to take a loan to refurbish a property, your lender will look at the following info:

  • An application form providing details about your current circumstance
  • A breakdown of your assets and liabilities
  • Details of the property you wish to refinance
  • Details of the work planned
  • Costs of the work planned
  • Timescales of the work planned
  • Details of your experience
  • Details of your exit strategy 

Speak to Rnagewell to find out what you need to get started with a refurbishment loan.

 

Still have questions on property refurbishment finance?

Contact our team today

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How Rangewell can help you set up Refurbishment Finance

All types of property finance demand expertise because of the large sums involved.

At Rangewell, our team of financial advisors includes people with specific expertise across the property sector.

They can help you find the right kind of finance arrangement for your refurbishment needs, whether you are an experienced developer with a major project and need finance for property developers, or a property owner seeking to increase the value of your investment.

We can help whether you have a specific refurbishment in mind, such as needing finance for holiday lets, or even a niche project such as a medical facility refurbishment (a big project like refurbishing a hospital, individual premises like refurbishing physiotherapists, or even multiple branches like veterinary practice refurbishment).

Our service is personal. We can work with you to understand your project and the potential as well as the costs. When you call us, we can explain the options that may be available, and help you arrange the most competitive finance to meet them.

REAL EXAMPLES OF WHAT WE CAN DO

  • Help arrange funding for a builder bringing a row of Victorian terraced housing to modern standards

  • Find the most competitive funding arrangement to refurbish a bank at the heart of a historic city centre and convert it into a retail centre

  • Find finance to allow the purchase of a derelict industrial property and its conversion into a business hub

  • Arrange funding to convert a Georgian townhouse into prestige offices

  • Helped set up refurbishment finance for property after damage by tenants had led to a possession order and eviction

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Discover our range of finances

Every type of finance for every type of business

Our goal is very simple - to help businesses find the right type of finance as quickly, transparently and painlessly as possible.

Helping you build your profits

  • Heavy refurbishment
    Heavy refurbishment finance may be suitable for experienced developers working on projects requiring construction or conversion works.
  • Light refurbishment finance
    Habitable property that requires light work to increase its value can be funded with Light refurbishment finance.
  • Funding all types of property work
    By arranging the right kind of refurbishment finance, all kinds of refurbishment work can be funded, from decoration to conversions and change of use.
  • No monthly costs
    Investment charges can be rolled up into the final payment.
  • Fixed payments
    Payments are usually agreed at the outset, letting you budget ahead with confidence.
  • Staged payments
    Staged payments provide funds as they are needed, reducing your interest charges.

Download Rangewell’s free and detailed guide to Property Refurbishment Finance

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Frequently asked questions

Have a question?

How can I get extra money to renovate my mortgage?

You can borrow more money than the house would originally be appraised for the account for your renovations. You do not need to have cash on hand to rehabilitate your home. This means that there's less financial stress and more options available during the buying process.

How much of a home improvement loan can I get?

Most lenders will provide loans of up to 75% of the post-refurbishment value. It is sometimes possible to qualify for higher, but a sizable deposit will be needed alongside a good credit history. Speak to Rangewell today to find out more!

How hard is it to get a renovation loan?

The majority of high street lenders will only offer a mortgage or loan on a property that is classed as habitable - eliminating many renovation projects. This is why you'll need to approach a specialist lender to weigh up your options. Get in touch with Rangewell to find out more!

How can light refurbishment finance help with property flipping?

Securing a light refurbishment loan from a  traditional lender can be a laborious process and can take several weeks or even months before receiving the funding. 

A short-term loan or a bridging loan is a fast and short-term financial solution that can be used to finance and refurb a development property to sell on.

Bridging loans are popular for developers to fund their projects as they can provide finance within a short period to minimise developmental delays.  

What to consider before taking out a heavy refurbishment loan?

When looking to take a heavy refurbishment finance to refurbish a property, your lender will look at the following info:

  • An application form providing details about your current circumstance
  • A breakdown of your assets and liabilities
  • Details of the property you wish to refinance
  • Details of the work planned
  • Costs of the work planned
  • Timescales of the work planned
  • Details of your experience
  • Details of your exit strategy 

Speak to Rnagewell to find out what you need to get started with a refurbishment loan. 

How long does property refurbishment finance take to complete?

Refurbishment loans can take anywhere from 10 days to 3 weeks. But it is more common for property refurbishment applications to take 10-14 days.  

Our service is:

Impartial

Transparent and independent, treating all lenders equally, finding the best deals.

In-depth

Every type of finance for every type of business from the entire market - over 300 lenders.

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Specialist Finance Experts support you every step of the way.

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We make no charge of any kind when we help you find the loan you need.