PROPERTY REFURBISHMENT FINANCE
WE CAN ARRANGE FINANCE FOR BOTH LIGHT AND HEAVY PROPERTY REFURBISHMENT PROJECTS
How Can Property Refurbishment Finance Help You?
Property refurbishment finance is a bridging loan that can be utilised in various situations to help landlords and property investors achieve their aim of improving an existing residential or mixed-use property before selling it or renting it out.
Property renovation loans are usually divided into two categories, each of which is determined by the sort of rehabilitation work that the borrower wants to do. Nobody enjoys being viewed as a number. That is why we make sure that each of our clients receives the care and outcomes they deserve. To provide you with the most incredible possible experience, we pride ourselves on delivering excellent old-fashioned customer service paired with 21st-century efficiency.
- Financing available for light, medium, and major renovations
- Lending against the property’s end value when completed
- 100% funding for construction and professional expenditures
- No exit fees
Individuals and businesses can apply for light refurbishment loans, which can be arranged to borrow against self-directed personal pension (SIPP) assets. The subject property backs the loan, and you don’t need to have completed any previous modest renovations to qualify. You may finish the job yourself or engage contractors to complete the work for you.
The following is a list of work that falls under the concept of light refurbishment:
- General redecorating, such as plastering, painting, and electrical, gas, and plumbing replacement.
- Bathrooms and kitchens are being replaced.
- New windows and doors
- Rendering on the outside of the house
- Radiators to be replaced
Specialist bridging finance lenders and buy to let lenders who offer a hybrid light refurbishment buy to let mortgage among the light refurbishment lenders. This is when a loan is first used for short-term bridging funding and converted into a buy-to-let mortgage.
Lenders will generally enable you to borrow up to 75% of the property’s worth, with some lenders also allowing you to borrow the cost of the property’s renovations. The bridging loan must subsequently be repaid either with a long-term buy-to-let or residential mortgage or by selling the subject property.
A short-term loan secured on the property is known as heavy refurbishment finance. As a security measure, both residential and commercial properties are appropriate. Heavy refurbishment financing refers to work that necessitates a planning application, structural improvements, or a change of use of the property.
Individuals and businesses can get heavy refurbishment financing, and the loan can be arranged to borrow against self-invested personal pension (SIPP) funds. The subject property backs the loan, and you will almost always be required to have completed past large renovation projects.
Typically, the lender will want to know which contractors are being hired to execute the work and will want to examine the contractor’s background to ensure they have the proper credentials and experience. You should be personally involved in the building sector if you plan to do the work yourself.
- Any work that falls within the category of mild refurbishment
- Structural modifications, such as retaining walls, expansions, and the development of additional space, such as the addition of additional rooms.
- Any operation that necessitates a permit, even if it involves approved development
- Any work that will result in a change of use for the property, such as converting a home into a house of several occupations or converting a commercial property to residential property (HMO)
Bridging loan lenders, high street commercial banks, and private banks are among the heavy refurbishment lenders. Lenders will generally enable you to borrow up to 75% of the property’s worth, with some lenders also allowing you to borrow the cost of the property’s renovations. The bridging loan must subsequently be repaid by a long-term buy-to-let or residential mortgage or by selling the subject property.
Each renovation job is distinct and should be treated as such. That means customising your application as much as possible to ensure that you receive the funding that is most suited to your needs. Going it alone can be a time-consuming and frustrating procedure, but our knowledgeable team at Simply Bridging is here to assist you.
We source refurbishment finance to cover:
- Commercial property
- Residential property
- Labour costs
- Professional fees and contingency
- Building materials
Simply Mortgages are members of the Nationals Association of Commercial Finance for Brokers (NACFB). We can arrange short term finance options for clients wishing to borrow between £100,000 to £25 Million.
The following factors determine the maximum loan-to-value ratio for a bridging loan:
- Residential – Bridging loans of up to 75% are available if you need to break a chain on a residential sale and purchase, and need some bridging funding to buy the new property until you sell the old one. You can fund the entire transaction with additional security if you have it.
- Commercial – Similar to residential bridging finance, we can obtain up to 100% of the acquisition price if additional security is provided.
We perform all the legwork at Simply Bridging, so you do not have to. We can assist you in obtaining the best possible financing for your project thanks to our ties with various lenders. This is determined by your needs, not just which lenders offer the best beginning rates, but also which features are most important to you.
Simply Bridging work with various different funding partners and lenders as well as private individuals. We have worked hard over the years to establish good relationships and our experience means we can find the right lending partner who will be happy to lend to you based on your individual circumstances.
We will work with you to prepare your lending proposal to enable us to obtain the best possible terms for you.
The next step is to contact us on the number below to discuss your requirements in more detail and then we can put you in the best possible position to arrange the refurbishment finance you need.