Call   01206 544333


Property Refurbishment Loans for Light Works
(85% Funding)

Light 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 light refurbishment.

Light property renovation finance is available for customers looking to refurbish 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.

The main benefits are that light refurbishment loans can be provided on properties that would otherwise not be granted, due to not being in a liveable or lettable condition.

If a property requires a more substantial refurbishment, e.g. needing planning permission; a loan for heavy refurbishment can be provided.

What is a Light Refurbishment property? These usually will cost under 15% of the value of the property for example: redecorating, plastering or even fitting a new kitchen.

Key Features: Light Refurbishment Loans

  • Light 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
  • No minimum outside income / All income types
  • No max of number of rooms / units
  • 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

Is is difficult to obtain a Light Refurbishment Loan?

The simple answer is No – subject to project viability and experience; we have arranged finance for light property renovations for all types of clients.

The key question a lender asks is; is the project viable? What this means is when you factor into account the purchase price, the acquisition costs (stamp duty and legal fees), the cost of works to refurbish the property & the financing costs, does it make a profit?
If it does then lenders are very happy to provide property refurbishment finance.


  • Purchase price – £200,000
  • Stamp duty / legal costs – £6,000
  • Cost of works – £30,000
  • Financing costs – £9,000

The costs equal to £245,000 however, the end value of the property post works is £280,000. Therefore, the profit is £35,000 and the project is viable and suitable for a property refurbishment loan.

Could I use a Buy-to-Let mortgage instead of a Property Refurbishment loan?

Some of our clients ask us this question. The answer depends on a number of factors.

Firstly, what is the condition of the property being purchased or refinanced? If it is not in a lettable condition, then a lender that offers a buy-to-let mortgage will not deem the property to be a suitable security and they will not proceed with the application; meaning there’s time and money wasted on a valuation fee, which could have cost several hundreds of pounds.

Sometimes a property is in a lettable condition but is not modernised and therefore not maximising its rental income potential.
For instance, you could secure a buy-to-let mortgage on the property but the rental income, as assessed by the valuer, comes back lower, meaning you need to put down a larger deposit than with a light refurbishment loan.


No – it doesn’t need to be perfect. Small late payments for loans or credit cards are accepted if an explanation can be provided for them.

Mortgage arrears are more serious from a lender’s perspective, but again if a solid explanation can be provided, the loan could be accepted on a case-by-case basis – subject to lender’s decision.

It depends on the type of works you plans to undertake. This page is specific to properties needing property refurbishment finance for light works. The terms “light works” varies from lender to lender but generally, they are works that require no planning permission or structural work.

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 Light Refurbishment Loans

  • Best suited for aesthetic improvements.
  • The best financing solutions in the market if you want speed, flexibility & ease of access.
  • Refurbishing and adding capital value to the property post works, is one of the best ways to maximise income and yields from property investment.

Disadvantages of Light Refurbishment Loans

  • Limited amount of lenders who offer this product.
  • Short-term loans.
  • You will need to provide detailed costs & timescales of works and a projected value once completed.
  • Exit Strategy is needed, whether it be to refinance onto a buy-to-let mortgage or to sell the property.

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 Light 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.
  • Want to read what our customers say? Read our testimonialsGoogle reviews.