Light or heavy?
Cosmetic and internal works are treated closer to a standard bridge; structural work and change of use attract more scrutiny.
Structure the works
Refurbishment bridging finance: light and heavy works.
Refurbishment bridging funds the purchase of a property that needs work, and sometimes the cost of the works, before the property is sold or refinanced at its improved value. Lenders treat "light" and "heavy" refurbishment differently, and works money is usually released in stages as the work is completed.
Operator notes
Three things lenders look at in a refurbishment.
The day-one loan, the works budget and the value after works all have to line up.
Works money in stages
Funding for works is often released after a surveyor confirms each stage is complete.
Budget for overruns
Lenders expect a buffer for cost and time overruns, often funded by the borrower.
Next step
Bring the schedule of works to the first conversation.
Share the purchase, the works, the costs and the exit, and a director will give you a straight view on how it could be structured.
Practical context
The value after works must be evidenced, not assumed.
Lenders look at the current value and the expected value once works are complete, supported by comparable evidence. Loan-to-value is checked at each stage, not just at the start.
Projects that move into new building or major construction are usually better suited to development finance, which is designed for staged build risk.
- Prepare a costed schedule of works and contractor details
- Show experience with similar projects
- Plan a sale or refinance at the improved value, with a buffer for delays
Decision framework
Check the project fits a refurbishment bridge.
If the plan relies on everything going right, the structure needs more headroom.
Works
Scope within light or heavy refurbishment, not new build.
Headroom
A loan-to-value that still works if costs rise or values soften.
Exit
A sale or refinance evidenced at the improved value.
Illustrative guidance only; eligibility, pricing and terms are confirmed after review. Bridging finance is secured against property. Your property may be repossessed if you do not maintain repayments on a loan secured against it.