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Welcome to Advocate Finance, your trusted specialists in securing Property Refurbishment Loans for Heavy Works. If you’re planning significant renovations, structural changes, or a full-scale property conversion, our tailored finance solutions are designed to support you.
We work with experienced developers and first-time investors, offering fast, reliable funding to help you bring your project to life while maximising its value.
For a property to be granted a mortgage, it must be habitable. It must have a fully functioning bathroom and kitchen and also has to be wind & watertight. For the property to be let to a tenant, lenders will require it to be in a “lettable condition” which normally is a higher standard than just “habitable”.
If a property needs re-plastering, redecorating, rewiring or a newly fitted kitchen or bathroom, this can be arranged through a light refurbishment loan – This type of project cannot involve any changes of use or require planning permission.
However, some refurbishment projects are more involved. If the works require planning permission changes, for example, converting offices into flats or any structural works, this would be considered a Heavy refurbishment project and would require a heavy refurbishment loan, which is typically provided by specialist Banks, Bridging Finance Lenders & development lenders.
When it comes to arranging heavy refurbishment loans, the lenders will want to see evidence of past projects. This is to ensure they have been carried out within the allotted time frame and within budget. They will also want to see evidence of any previous loans being paid off either by selling the property or refinancing to another mortgage.
Where a heavy refurbishment loan is required, the lender will want to see a “schedule of works”.
This is a breakdown of all the costs involved in the project. They will also want to know how long the project is predicted to take. A valuer will comment on whether the intended budget is realistic and if the time scale is achievable. They often comment on the value of the property on day one (before the work has been carried out), and then what the Gross Development Value (GDV) is. This is also known as the post refurbishment works value.
While development finance loans and heavy refurbishment loans share similarities, they cater to different types of projects. Development finance is typically used for ground-up construction or significant new builds, whereas heavy refurbishment loans are designed for existing properties undergoing extensive renovations or structural changes.
Heavy refurbishment loans are often more tailored and cost-effective for projects involving work like adding extensions, removing walls, or converting properties for different uses.
Development finance might be more appropriate if your project involves demolishing the existing structure or building entirely new units. At Advocate Finance, we help you determine the best financing option based on the scope and goals of your project.
Heavy refurbishment projects often require more extensive planning permissions and adherence to building regulations. Projects involving structural changes, listed properties, or conversions to HMOs must comply with local authority rules.
Ensuring that your plans meet these standards not only avoids costly delays but also reassures lenders of the project’s viability. Advocate Finance helps secure funding for compliant projects, providing peace of mind throughout the process.
Advantages | Disadvantages |
Tailored for Large-Scale Projects: Specifically designed for structural changes and extensive renovations. | Higher Initial Costs: Larger upfront investment required compared to light refurbishment loans. |
Staged Drawdowns: Provides greater control over funding and reduces interest costs during the refurbishment phase. | Planning Requirements: Often requires planning permission and adherence to stricter regulations, adding complexity. |
Increased Property Value: Enables significant value increases through major works, boosting rental income or resale potential. | Longer Timescales: Commercial tenants can take longer to find but, on the whole, they stay longer as tenants than residential. |
Flexible Exit Strategies: Options to refinance or sell after refurbishment, maximising profitability. | Market Risks: Success depends on market conditions and post-refurbishment valuations, which may fluctuate. |
Wide Property Eligibility: Suitable for a variety of property types, including residential, HMOs, and mixed-use buildings. |
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In many cases, yes. Projects involving structural changes, extensions, or conversions typically require planning permission. It’s essential to consult with local authorities and ensure your plans comply with building regulations.
Timelines vary depending on the scope of work but generally range from 6 to 18 months. Staged drawdowns ensure you have access to funds at each phase, keeping your project on schedule.
Heavy refurbishment loans are ideal for projects involving structural changes, extensions, or full property conversions. Examples include converting a single residential home into a HMO, adding a large extension, or transforming a commercial space into residential flats.
Staged drawdowns release funds incrementally as the project progresses. This approach helps manage cash flow, as you only pay interest on the amounts drawn at each stage. Lenders typically require project milestones to be met before releasing the next tranche of funds.
Our expert team of mortgage brokers are here to guide you through every stage of the process.
Important Information
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
We are a credit broker not a lender.
Advocate Finance Ltd, registered at 55 Crown Street Brentwood, Essex CM14 4BD. Company Register number is 05579380. Authorised and Regulated by the Financial Conduct Authority. Our FCA registration number is 592830.
You can check via www.fca.org
We are registered with the ICO, Z1654205 and you can check via www.ico.org.uk.
We conduct both regulated and unregulated business and therefore not all products provided through us are regulated by the Financial Conduct Authority. We source mortgages and loans from a panel of lenders.
We may receive a commission that will vary depending on the lender, product, the amount borrowed or other permissible factors.
Advocate Finance is a mortgage and finance brokerage firm that specializes in securing loans and mortgages for various types of properties, including single properties, large portfolios, commercial sites, and development projects. They assist clients regardless of credit history, circumstances, or legal ownership, aiming to provide tailored financing solutions