Refurbishment finance for medium or moderate extent of works
Details at a glance
- 70% LTV Purchases
- 85% LTV Improved value
- Roll up of interest
- Interest only available
- conversions to HMO
- refurbs up to 10 mths
- First Legal Charge
- No minimum income
- Buy to Let property
- Multi-tenant HMOs
- Mixed use
- Loans from £65k
- Loans up to £15m
- 70% LTV Purchases
- 6mths interest roll up
- up to 30% cost of works
The Medium Refurbishment Solution
Medium refurbishment is suitable for experienced property developers with a demonstratable track record of property refurbishment who require a facility to carry out remedial building work, renovation or for converting a property where planning consent is already granted. The refurb may include non-structural conversion of a single building into multiple letting units such as self-contained flats or a multi-tenancy home of multiple occupation (HMO) where internal configuration may be necessary.
Medium refurbishment for longer term refurb projects up to 10 months
Medium refurbishment - this block of text needs changing
A light refurbishment mortgage can be utilised to purchase, or remortgage, a property needing limited repairs, redecoration and refurbishment. It is suitable for most single dwelling buy to let investment property requiring renovation. Often improvements to the property might be installing a new kitchen or bathroom, non-structural changes to the layout, redecoration or replacement of central heating systems. Improvements to the property may only be necessary to make the property safe and fit to live in under the Decent Homes Standard or HHSRS legislation that regulates private and social housing.
Other renovations may be carried out to increase the market or rental value, or to capitalise on a uninhabitable property purchased at auction. The Light Refurbishment mortgage can be used for many situations where the property needs some form of work to be carried out before it can be let to a tenant. In some instances, a property missing only a functional bath or WC would not be mortgageable with a conventional Buy-to-let mortgage product, a light refurbishment product offers a viable solution to avoid mortgage retentions or using bridging finance.
Typically light refurbishment would limited to non-structural work and other work that would not need planning permission or other building work that needing to be regulated under building regulations. For renovation programs that would require planning consent, such as changing the use of a property from single dwelling to multiple dwellings, the heavy refurbishment mortgage would be required.
HMO conversions and refurbs
The medium refurbishment can be used when converting a property to a house of multiple occupation (HMO). Internal reconfiguration can be carried out providing work is limited to being of a non-load bearing nature. Stud work partitioning of areas would be acceptable.
- Planning permission already granted
- Change of use approved (i.e. C3 to C4)
- HMO License not required during refurb
Planning consent and any change of use of the building should already be in place before lending is advanced. When converting or refurbishing HMOs, this can be carried out without a HMO licence in place and obtained after the refurbishment has completed.
Medium refurbishment extent of works
- installing new kitchen or new bathrooms
- electrical rewiring, plumbing
- re-plastering or exterior rendering
- cosmetic improvements, redecoration etc.
- installation of central heating system
- remedial work such as damp proofing or timber treatments
- replacement floor coverings
- non-load bearing structural work
- Planning consent already in place.
- usually not more than 30% property value
Medium refurb working example #1
Conversion of a single dwelling to 5 room HMO:
Purchase price: £325,000
Loan amount 70% LTV: £227,500
Cost of works: £85,000
Refurb term: 6 months
End value: £550,000
Refinance amount 75% LTV: £412,500
Medium refurb working example #2
Refurbishment of a single dwelling for Buy to let:
Purchase price: £226,500
Loan amount 70% LTV: £158,550
Cost of works: £48,000
Refurb term: 5 months
End value: £352,000
Refinance mortgage amount at 85% LTV: £299,200
Internal reconfiguration stud work partitioning in a property being renovated.
Modern kitchen in newly renovated property for executive buy to let market
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Get a quotes for refurbishment finance
Get loan illustrations and details of available mortgages for refurbishment or development of investment property and other multi-let or multi-block investments. Simply complete this online interactive form selecting the property style and letting configuration of the property along with other specifics required. Please indicate if you would like us to telephone you to discuss mortgage and finance options available to you or if you would prefer email communication.