# Light vs Heavy Refurbishment Bridging Source: https://www.cashbookfinance.co.uk/insights/refurbishment-bridging-finance Last updated: 2026-10-26 Author: Bjorn Laku, Director & Chief Marketing Officer (https://www.bjornlaku.com/) Publisher: Cashbook Finance Limited > How refurbishment bridging works - light and heavy refurbishment, staged drawdowns, monitoring, the value after works and planning a credible exit. FCA-registered UK lender FRN 782472 ## 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. Written and reviewed by [Bjorn Laku](https://www.cashbookfinance.co.uk/bjorn-laku), Director & CMO. Business bridging only: Cashbook Finance does not offer regulated bridging loans secured on a home the borrower or a close family member lives in. LTV · Property → short-term capital Illustration Bridging structure check A £325,000 loan against a £500,000 property Within reference **65%** loan-to-value, against a 70% illustrative reference point - **Equity remaining** £175,000 - **Headroom to 70% LTV** £25,000 Estimated property value · £500,000 Requested gross loan · £325,000 Within a 70% illustrative LTV reference point. **Security risk:** Your property may be repossessed if you do not keep up repayments on a loan secured against it. Check eligibility · Costs and exit **£30m+** funded · **100+** UK businesses since 2019 · London SE1 - FCA **782472** - ICO **ZB545200** - Companies House **10723098** ### 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. Lenders treat "light" and "heavy" refurbishment differently, and works money is usually released in stages as the work is completed. Scope #### Light or heavy? Cosmetic and internal works are treated closer to a standard bridge; structural work and change of use attract more scrutiny. Drawdowns #### Works money in stages Funding for works is often released after a surveyor confirms each stage is complete. Contingency #### Budget for overruns Lenders expect a buffer for cost and time overruns, often funded by the borrower. Check eligibility · About 2–3 minutes, no credit search. ### 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. ### 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](https://www.cashbookfinance.co.uk/insights/bridging-finance-glossary#term-loan-to-value-ltv) 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 Which suits you ### Light, heavy or development? | Your situation | Usually the better fit | Why | | --- | --- | --- | | Kitchens, bathrooms, decoration | Light refurbishment bridge | Close to a standard bridge | | Structural work or change of use | Heavy refurbishment bridge | More scrutiny, staged drawdowns | | New build or major extension | Development finance | Built for staged construction risk | | Works not yet costed | Cost them first | Lenders size works funding on a schedule | Worked example Check eligibility · About 2–3 minutes, no credit search. ### Purchase, works and sale. An investor buys a property for £300,000 that needs £60,000 of works. The bridge lends 70% of the purchase on day one and releases the works money in stages; the property sells for £420,000 in month 9. The investor puts in £90,000 plus costs; the value after works has to be evidenced for the numbers to hold. Check eligibility · Talk it through with a director | Purchase price | £300,000 | | --- | --- | | Day-one loan (70%) | £210,000 | | Works money, released in stages after each inspection | £60,000 | | Interest on the day-one loan, 9 months at 1% a month | £18,900 | | Interest on the works money (about 4 months on average) | £2,400 | | Arrangement fee, 1% of £270,000 | £2,700 | | Repaid from the £420,000 sale | £291,300 | Illustrative: interest at 1% a month, rolled up, and an arrangement fee of 1% of the loan. Valuation and legal costs are extra and quoted per case. Bridging finance is secured against property, which may be repossessed if repayments are not maintained. ### 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](https://www.cashbookfinance.co.uk/insights/bridging-finance-glossary#term-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. **Related guidance:** [Bridging finance](https://www.cashbookfinance.co.uk/bridging-finance) · [Pricing & decisions](https://www.cashbookfinance.co.uk/pricing-decisions) · [Eligibility](https://www.cashbookfinance.co.uk/eligibility) · [Case studies](https://www.cashbookfinance.co.uk/case-studies) Quick answers ### Common questions. Check eligibility · All questions **Will the lender fund the works?** Often yes, released in stages after a surveyor confirms each stage. Some light refurbishments are funded from your own cash. **What is the value after works?** The expected value once works are complete, backed by comparable sales. Lenders check it rather than accept it. **What if costs overrun?** You usually fund overruns. Build a contingency into the plan. **When is development finance better?** For new build, major extensions or projects with planning-led construction risk. Can’t see your question? Talk it through with a director #### Official sources - Building regulations approval · GOV.UK Official guidance and legislation on the rules this page refers to. They explain the rules in general; take advice on your own position. ### A practical note from the lender. **Bjorn Laku: commercial judgement** Bridging delays usually come from unclear security, weak exit evidence or legal details that should have been surfaced before the deadline became urgent. ### More guides on bridging finance - [Bridging loans in London](https://www.cashbookfinance.co.uk/bridging-loans-london) - [Auction bridging finance](https://www.cashbookfinance.co.uk/insights/auction-bridging-finance) - [Bridging finance LTV guide](https://www.cashbookfinance.co.uk/insights/bridging-finance-ltv-guide) - [Bridging finance vs commercial mortgage](https://www.cashbookfinance.co.uk/insights/bridging-finance-vs-commercial-mortgage) - [Bridging vs development finance](https://www.cashbookfinance.co.uk/insights/bridging-finance-vs-development-finance) - [Bridging for limited companies and SPVs](https://www.cashbookfinance.co.uk/insights/bridging-loans-limited-companies-spvs) --- Cashbook Finance. Cashbook Finance Limited is registered with the Financial Conduct Authority under Firm Reference Number 782472. Company number 10723098. Registered office: Cumberland House, 24–28 Baxter Avenue, Southend-on-Sea, Essex SS2 6HZ. Registered with the Information Commissioner’s Office under reference ZB545200. All finance is subject to eligibility, satisfactory due diligence, credit approval and agreed terms. Invoice finance, trade finance and bridging finance may not be suitable for every business. The availability, structure, amount, pricing, fees, security requirements and completion timescales of any facility will depend on the applicant’s circumstances, the quality of the supporting evidence provided and our assessment of the proposed transaction. Any figures, examples, rates or timescales shown on this website are for illustrative purposes only and do not constitute an offer, commitment or guarantee of finance. Terms and conditions apply. Bridging finance is secured against property. Your property may be repossessed if you do not maintain repayments on a loan secured against it. Applicants should obtain independent legal, financial and tax advice where appropriate.