Lendus.

Refurbishment Development Finance

Funding for major renovation projects that go beyond cosmetic works, covering structural changes, reconfiguration, and full gut-strip refurbishments to bring properties up to modern standards.

50+ UK lenders through Fundably
3+ months trading
UK limited companies only
Monthly revenue required

Rates

7.0% – 11.0%

per annum

LTGDV

Up to 70%

LTC

Up to 80%

Timeline

6-18 months

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For UK limited companies with 3+ months’ trading and monthly revenue.

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Finance structure

Heavy Refurbishment Loan

Rate
7.5% - 11.0%
LTC
Up to 80%

Best for: Projects involving structural works, extensions or reconfiguration requiring planning permission

Light Refurbishment Bridge

Rate
7.0% - 9.5%
LTC
Up to 75%

Best for: Cosmetic and non-structural works on vacant or tenanted properties with a clear exit within 12 months

Mezzanine Top-Up

Rate
13% - 18%
LTC
Up to 90%

Best for: Investors seeking to minimise equity injection on high-margin urban refurbishment projects

Key considerations

Exit strategies

Sale on open market post-refurbishment
Refinance to BTL mortgage or commercial term loan once habitable and tenanted

Eligibility

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For UK limited companies with 3+ months’ trading and monthly revenue.

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Market context

Refurbishment lending is one of the most active segments of the UK bridging and development market, accounting for approximately 35–40% of all short-term property finance completions. With an estimated 1.5 million vacant and long-term empty homes across England and a growing emphasis on embodied carbon reduction, refurbishment over demolition is increasingly favoured by both developers and planners. Average refurbishment loan sizes have grown to around £1.2 million as inflationary build costs push project budgets higher.

Frequently asked questions

What is the difference between light and heavy refurbishment finance?
Light refurbishment covers non-structural, cosmetic works such as new kitchens, bathrooms, flooring and decoration, typically no planning permission required. Heavy refurbishment involves structural changes, extensions, basement conversions, or any works requiring building regulations approval or planning consent. Heavy projects attract higher rates and more rigorous monitoring.
Do I need planning permission before applying for refurbishment finance?
For heavy refurbishment involving planning-required works, most lenders expect permitted development rights confirmed or full planning permission granted before drawdown. For light refurbishment, no planning is required. Applications can begin before planning is resolved, but drawdown is typically conditional on consent being secured.
How are refurbishment funds released?
Funds are usually structured with a day-one advance against the current property value, and subsequent tranches released as works are completed and verified by a monitoring surveyor or desktop valuation update. Some lenders release the full facility on day one for smaller light refurbishment projects with low build budgets.
Can I use refurbishment finance on a property I already own?
Yes, many borrowers refinance an existing asset onto a refurbishment facility to release the equity needed to fund renovation works. The lender will take a first charge over the property and assess the loan against both the current and post-works end value. Any existing mortgage must be repaid from the new facility.
What happens if my build costs overrun?
Most refurbishment lenders build in a contingency line of 10–15% of the build budget within the facility. If costs exceed this, you will need to inject additional equity or negotiate a facility increase, which typically requires a revised valuation and monitoring report. Keeping a QS involved throughout the project is strongly recommended to catch overruns early.

Related project types

Conversion Finance HMO Development

Guides and resources

Self-Build Finance Guide Bridging vs Development Finance Best Development Finance Lenders Together Money Review

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For UK limited companies with at least 3 months’ trading and monthly revenue.

Business finance matched to your needs

Ltd companies · 3+ months trading · monthly revenue

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