PROPERTY REFURBISHMENT FINANCE
WE CAN ARRANGE FINANCE FOR BOTH LIGHT AND HEAVY PROPERTY REFURBISHMENT PROJECTS
Light refurbishment loans are available to individuals, companies and the loan can be structured to borrow against self invested personal pensions (SIPP) funds. The loan is secured on the subject property and it is not a requirement for you to have experience of completing previous light refurbishments. The work may be completed by you or by contractors of your choosing hired to completed the work.
The following is a list of permitted work under the light refurbishment definition:-
- General redecoration including plastering, painting, replacement electrics, gas and plumbing.
- Replacement of bathrooms and kitchens
- Rendering to the outside of the property
- New windows and doors
- Replacement radiators
Light refurbishment lenders include specialist bridging finance lenders and buy to let lenders that offer a hybrid light refurbishment buy to let mortgage. This is where the loan is initially a short term bridging finance which is then subsequently converted into a buy to let mortgage.
Lenders will typically allow you to borrow up to 75% of the property value, some lenders will also allow you to borrow the cost of the works to the property. The bridging finance then needs to be repaid using a long term buy to let or residential mortgage or repaid via the sale of the subject property.
Heavy refurbishment finance is a short-term loan secured on property. Both residential and commercial properties are acceptable as security. Heavy refurbishment finance involves work that requires a planning application and requires structual changes or will involve a change of use to the property.
Heavy refurbishment finance is available to individuals, companies and the loan can be structured to borrow against self invested personal pensions (SIPP) funds. The loan is secured on the subject property and it is usually a requirement for you to have experience of completing previous heavy refurbishment projects.
The lender will usually have a requirement to know which contractors are being used to complete the work and check the background of the contractor to ensure they have the credentials and experience necessary to complete the work. If you plan to do the work yourself then you should be directly involved in the construction industry.
- All works that fall under light refurbishment
- Structural changes including retaining walls, extensions, the creation of extra space including the addition of extra rooms.
- Any work that requires planning permission even if permitted development
- Any work that will result in a change of use for the property including commercial to residential or the conversion of a dwelling into a house of multiple occupation (HMO)
Heavy refurbishment lenders include bridging finance lenders and high street commercial banks and private banks. Lenders will typically allow you to borrow up to 75% of the property value, some lenders will also allow you to borrow the cost of the works to the property. The bridging finance then needs to be repaid using a long term buy to let or residential mortgage or repaid via the sale of the subject property
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 maximum loan to value of a bridging loan will depend on the situation:
- Residential – If you are looking to break a chain on your residential sale and purchase and need some bridging finance to be able to buy the new property until you sale the existing one then Bridging loans up to 75% are available. If you have additional security available you can fund 100% of the purchase
- Commercial – Similar to residential bridging finance with additional security we can secure up to 100% of the purchase if additional security is available.
Simply Mortgages 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.