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Welcome to Advocate Finance, your trusted mortgage broker for securing Property Refurbishment Loans for Light Works.
Whether you’re looking to enhance the value of your property or prepare it for rental, our tailored finance solutions can help.
From straightforward redecorations to minor structural improvements, we work with you to provide fast, reliable funding options to ensure your refurbishment project is completed efficiently.
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
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.
Example:
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.
| Purchase price | £200,000 |
| Stamp duty / legal costs | £6,000 |
| Cost of works | £30,000 |
| Financing costs | £9,000 |
Some of our clients ask us this question. The answer depends on several 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.
While light refurbishment projects generally do not require extensive planning permissions, understanding local regulations is still essential. For instance, listed properties or those in conservation areas may require approval for even minor changes. Ensuring compliance with these rules can prevent delays and ensure smooth project completion.
Advocate Finance provides guidance on funding projects that adhere to local planning requirements, helping you stay on track.
Advantages | Disadvantages |
Fast Access to Funds: Loans are processed quickly, allowing you to begin the refurbishment without delays. | Short-Term Costs: While interest-only payments are manageable, loans are typically short-term and require refinancing or repayment once the refurbishment is complete. |
Flexible Terms: Short-term loan options with interest-only payments during the refurbishment phase help manage costs. | Market Dependency: The success of the project depends on the property’s post-refurbishment valuation and market conditions. |
Increased Property Value: Refurbishment increases the market value of your property, enabling higher rental income or a better sale price. | Eligibility Criteria: While flexible, some lenders may require a solid financial history or experience in property refurbishment. |
Post-Refurbishment Options: Transitioning to a long-term mortgage allows you to release equity and reinvest in new projects. | Upfront Planning Required: Proper planning, including detailed cost estimates and timelines, it’s crucial to avoid delays and unexpected expenses. |
Wide Eligibility: Suitable for a range of properties, from single residential homes to HMOs. |
Expertise and Experience
How Can YOU Benefit from Our Advice?
Competitive Fee Structure
Comprehensive Range of Services
Yes, light refurbishment loans are suitable for properties that need improvements but are still structurally sound. If significant structural changes are required, a heavy refurbishment loan may be more appropriate.
Light refurbishment projects generally take between 4 to 12 weeks, depending on the scope of work. Our financing options ensure you have the necessary funds to complete the project within this timeframe.
Light refurbishment loans are suitable for a wide range of properties, including residential homes, buy-to-let properties, and HMOs. They are ideal for projects requiring non-structural improvements such as redecorating, updating kitchens and bathrooms, or improving the overall appeal of a property.
Funding for light refurbishment projects can often be secured within a few weeks, depending on the lender and the complexity of the application. At Advocate Finance, we work with lenders who prioritise speed and efficiency, ensuring you can access the funds you need to start your project promptly.
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