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Property Refurbishment Loans for Heavy Works
(up to 100% build costs funded)

Heavy property refurbishment loans explained:
These loans are available for what lenders class as either light refurbishment works or heavy refurbishment works. On this page, we are going to specifically focus on heavy refurbishment.

Property refurbishment finance is available for customers looking to renovate a property, in order for them to then hold it as a buy-to-let investment or to re-sell in order to make an instant profit.

Refurbishing and adding capital value to the property post works, is one of the best ways to maximise income and yields from property investment.

What is a Heavy Refurbishment property? Heavy refurbishments will usually cost more than 15% of the property value. Best suited for extensive works such as, loft conversions and extensions that would require planning permission.

Key Features: Heavy Refurbishment Loans
  • Typical interest rates and fees – Call our advisers
  • Heavy Refurbishment Loans from £100,000 to £50 million; subject to affordability and credit criteria
  • Loan to values up to 75% (100% with cross charges)
  • Loan to values below 50% could be eligible for standard BTL mortgages, thereby benefitting from lower interest rates
  • Mortgage Term: 1 to 30 years
  • Payments: interest only / capital repayment / part capital / interest compounded / rolled or retained (no monthly payments)
  • Purchase / Refinancing / Capital Raising (any purpose)
  • No minimum outside income / All income types
  • No max of number of rooms / units (X to XX)
  • No max of number of tenancies
  • All credit histories: High Net Worth to Credit Repair
  • All applicant types: Individuals / Corporate (Ltd Co’s) / SSAS etc
  • All tenures: Freehold / Leasehold (no minimum term)
  • All residential tenants: Working, Students, LHA benefits
  • All residential tenancies: AST to Corporate Leases
  • All business tenants: No restrictions on industry/sector
  • All business tenancies: Fully repairing leases / Licences
  • EPC-enhanced products available

Why use a Heavy Refurbishment Loan?

For a property to be granted a mortgage, it must be habitable. It has to have a fully functioning bathroom and kitchen and also has to be wind & water tight. 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 mortgage – 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 heavy refurbishment finance, which is typically provided by specialist Banks, Bridging Finance Lenders & development lenders.

What experience will I need for a Heavy Refurbishment project?

When it comes to arranging heavy refurbishment mortgages, 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.


A lender will require the standard information you provide for any mortgage, credit or loan application but in addition, will want to see information on the heavy refurb. Will usually include the level and details of the project (depending on the scale) and complexity, but typically will consist of:

  • Schedule and specification of works – this will be referred to the valuer to comment as part of the valuation process.
  • Is planning permission required?
  • Past experience / details of the construction team.

The minimum loan amount is £100,000 if you do not require the project works to be funded by the lender.

If you require the lender to fund the project works, then the minimum loan amount is £250,000. The loan process involves monitoring surveyors who visit the works as they are carried out, due to this lenders require the loans to be of a larger size.

The intended method for repaying the loan must be clearly outlined at the start of the application, known as an Exit Strategy; a lender will insist on this. Repayment would usually be via sale or refinance.

  • If the property is being sold, the lender will want to see whether the estimated sale price, demand & time scales are realistic to ensure the loan is paid off in full before the end of the term.
  • If the exit strategy is via refinance, the borrower will need to provide evidence that they can obtain a mortgage elsewhere, usually by way of an agreement in principle (AIP) from another bank.

Our advisers offer a free consultation, so please give us a call or use the “Get in Touch With Us” form at the end of this page

Advantages of Heavy Refurbishment Loans

  • Heavy refurbishment loans are a short-term funding line. It enables property developers and investors to fund both the purchase of a property needing work and the funds to carry out the heavy refurbishment.
  • The best financing solutions in the market if you want speed, flexibility & ease of access.
  • You will need to provide detailed costs & timescales of works and a projected value once completed.
  • An Exit Strategy is needed.

Disadvantages of Heavy Refurbishment Loans

  • Heavy refurbishment loans are often seen as a more expensive option when compared to traditional mortgages. But they have proved a popular solution to many property developers and investors who want to make money from refurbishing properties.
  • You will need to provide detailed costs & timescales of works and a projected value once completed.
  • They are Short-Term loans so an Exit Strategy is needed.

How can YOU benefit from our advice?

  • If speed is essential to the transaction, our advisers will prioritise your case to ensure deadlines are met.
  • Our Advisers have expert knowledge when it comes to Heavy Refurbishment Loans.
  • We offer a FREE assessment and have a no upfront fee policy. Our typical fee for 99% of our clients is capped at £395
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