- 02083111234
- Mon-Fri : 9:00 - 17:30
Light refurbishment finance is a short-term bridging-style facility used to fund cosmetic improvements to a property that do not require planning permission and do not involve structural alterations.
The facility is typically advanced as a single lump sum on purchase or remortgage rather than in staged drawdowns, making it faster and simpler to arrange than full development finance. The loan is repaid on sale of the improved property or by refinancing onto a buy-to-let or residential mortgage once the works are complete.
Light refurbishment finance sits at the intersection of bridging finance and development finance. It uses bridging-style speed and single-advance structures but is assessed on the post-works value of the property rather than just the current market value. This means borrowers can access higher loan amounts than a standard bridging loan would provide where the works will add significant value to the property.
Property investors acquiring properties below market value that require updating before letting or selling are the primary users. Portfolio landlords refreshing existing stock to achieve higher rents or better energy performance ratings, property dealers who buy and sell quickly with cosmetic improvements, and residential purchasers who want to fund an immediate refurbishment alongside a property purchase also use this product.
The distinction between light and heavy refurbishment is important because it determines which lender market applies and whether planning permission is required. Light refurbishment covers non-structural cosmetic works; heavy refurbishment covers structural works and planning-required conversions.
| Work Type | Light Refurb | Heavy Refurb | Notes |
|---|---|---|---|
| Kitchen replacement | Yes | No | Like-for-like replacement without structural changes |
| Bathroom replacement | Yes | No | Like-for-like, no layout changes |
| Re-decoration throughout | Yes | No | Including plastering |
| New flooring | Yes | No | Including underfloor heating if non-structural |
| Re-roofing (like for like) | Yes | No | Same roof type, no extension |
| New windows and doors | Yes | No | Same openings, no structural work |
| Re-wiring and re-plumbing | Yes | No | Full replacement acceptable |
| Loft conversion | No | Yes | Structural works and planning (usually) |
| Extension | No | Yes | Planning permission required above PD limits |
| Change of use | No | Yes | Always requires planning consent |
| Structural wall removal | No | Yes | Structural engineer and building regs required |
| Basement conversion | No | Yes | Structural engineering and party wall required |
The distinction between light and heavy refurbishment is important because it determines which lender market applies and whether planning permission is required. Light refurbishment covers non-structural cosmetic works; heavy refurbishment covers structural works and planning-required conversions.
Most light refurbishment lenders advance up to 70 to 75 percent of the post-works value (GDV). The GDV is assessed by an independent RICS valuer appointed by the lender, who inspects the property and provides both the current value and an opinion on the post-works value based on the proposed scope of works. The lender advances the lower of the LTGDV limit and the loan to purchase price, typically 75 percent.
Exit route is the most important underwriting criterion for light refurbishment lenders. A credible, evidenced exit route either to a BTL mortgage with a named lender and an agreed valuation basis, or to a sale with comparable evidence to support the expected sale price, gives the lender confidence that the loan will repay within the agreed term. Weak exit route evidence is the most common reason for light refurbishment applications to be declined or to receive a lower loan than expected.
Light refurbishment lenders require a detailed schedule of works and an estimated completion timeline. For light works on a single residential property, the works period is typically one to four months. Lenders set the facility term to include the works period plus a reasonable sell or refinance period, usually three to six months, giving a typical light refurbishment facility term of three to nine months.
We review the property, the proposed scope of works, the estimated cost, and the expected post-works value. We advise on whether the project meets the light refurbishment criteria of the lenders we work with and identify the most competitive funding available for the specific project.
The lender instructs an independent RICS valuer to inspect the property and provide both the current open market value and a post-works value opinion based on the schedule of works. The valuation is typically instructed within 24 to 48 hours of application and completed within three to five working days.
Light refurbishment lenders can make credit decisions within 24 to 72 hours of receiving the valuation report. Cases with a strong exit route, clean credit, and a credible works schedule are straightforward to approve quickly.
Solicitors complete the loan documentation and register the legal charge. Light refurbishment transactions typically complete within two to four weeks of application, or faster where solicitors are instructed early in the process.
Once the works are complete, the borrower either refinances onto a BTL mortgage or lists the property for sale. We assist with the refinance process and monitor the works timeline to ensure the exit is in place before the facility term expires.
Run the numbers, then talk to us. Our financial calculators cover mortgage repayments, how much you could borrow, stamp duty, bridging finance and rental yield. Results are estimates only and should not be relied on as financial advice.
Light refurbishment projects are generally straightforward to fund, but the details of the works and the exit strategy determine which lenders are most appropriate. Here are some of the situations our advisers help investors work through.
Light refurbishment finance can be structured to cover both the purchase price and the refurbishment costs in a single facility. The purchase advance is released on completion and the refurbishment element can be held back and released on commencement of works, or released in a single advance. We arrange the facility before the auction so you know exactly how much you can bid and on what terms.
Light refurbishment finance is designed precisely for this situation. We arrange a facility against the post-works value, which gives you the capital to carry out the works and the time to refinance onto a long-term BTL mortgage once the property is in lettable condition. We also pre-arrange the BTL refinance so the exit is confirmed before the refurbishment facility is in place.
The distinction matters because it determines which lender market applies and whether planning permission is needed. We review the proposed works in detail before approaching any lender and advise on how the works should be structured to meet the light refurbishment criteria where possible, or on the most appropriate heavy refurbishment or development finance route if structural works are involved.
Light refurbishment finance is available as a remortgage as well as for purchases. If you own a property that needs updating, we can arrange a facility against the post-works value that releases capital for the refurbishment and gives you the time to refinance or sell once the works are complete.
Speak to an adviser to discuss your circumstances and explore how bridging finance could work for you.
Clear,honest answers to the questions we hear most from clients and introducers.
Most light refurbishment lenders advance up to 75 percent of the post-works value, subject to a maximum of 75 percent of the purchase price. Facility sizes typically range from £50,000 to £5,000,000. Larger facilities on high-value properties are available from specialist lenders.
A straightforward light refurbishment facility can complete within two to three weeks of application where the valuation, credit decision, and legal documentation all proceed smoothly. Where a property is being purchased at auction and completion is required within 28 days, we can often arrange the facility within that window for a property that meets the lender’s criteria.
Light refurbishment finance is predominantly an investment product rather than a regulated product. Most lenders restrict it to properties being purchased or refinanced as investment assets rather than as a primary residence. If the property is your main home, regulated bridging finance may be available but the criteria and process are different.
We build in sufficient time for the works plus a reasonable exit period when the facility is structured. If works are delayed, most light refurbishment lenders will agree an extension for a fee if the borrower has a credible explanation and the exit route remains viable. Extensions are always better arranged proactively before the facility expires rather than at the last minute.
We search the market and handle the process so you can focus on moving.
Whole of market search across a wide panel of lenders
Dedicated adviser throughout the process
We handle the paperwork and liaise with lenders on your behalf
