Capital Finance Group
Refurbishment Finance
Refurbishment finance funds the purchase and improvement of property, whether a light cosmetic refresh or a more extensive conversion. It is designed for projects where traditional mortgages may not be suitable because the property is unmortgageable or the works are significant.
Speak to a Property Finance SpecialistRefurbishment Finance
The level of works makes a big difference to which lenders will consider a project. We will help you define the scope, present your costings and exit plan clearly, and approach lenders suited to the scale of the refurbishment.
Who it suits
- Investors buying property to renovate and sell or let
- Light refurbishments such as new kitchens, bathrooms and decoration
- Heavier works, including structural changes, extensions or conversions
- Properties that do not currently meet standard mortgage criteria
How it works
- Finance can cover part of the purchase price and, in many cases, some or all of the works
- Light refurbishment funding may be released at the outset, while heavier works are often funded in stages
- Terms are typically short, often up to 12 to 24 months
- The exit is usually a sale or a refinance onto a longer-term mortgage
- Some lenders consider the expected post-works value when setting the loan
Things to consider
- A clear schedule of works, costings and a realistic exit strategy are essential
- Planning permission or building regulations approval may be required for heavier projects
- Fees can include arrangement, valuation, exit and monitoring costs
- Interest costs can increase if the project or sale takes longer than expected
- The property is used as security, and personal guarantees may be requested
Got a refurbishment project in mind? Speak to an expert about financing the purchase and the works.
Finance is subject to status and lender criteria.
Discuss refurbishment finance
Got a refurbishment project in mind? Speak to an expert about financing the purchase and the works.
Speak to a Property Finance Specialist