The Mortgage Cafe

Property Refurbishment Finance

Light Refurbishment

Light Refurbishment Requrements

Acquisition & refinance for light refurbishment and renovation projects.

  • Residential investment
  • Refurb to sell
  • Refurb to rent
  • £30k to £5m
  • 1 Day to 18 Mths refurb
  • Term mortgages
  • Bridging facilities
  • Refinance within 6 mths
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Extent of Works for Light Refurbishment

Loft conversions are permitted in some cases but generally non-structural. and work including:

  • Kitchen & bathroom refit
  • Decorative attention
  • Electrical upgrades, rewire.
  • Renewal of floor coverings
  • Central heating – update or replace
  • Specialist remedial work – timber/damp

Quote Refurbishment Mortgages & Finance

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Light Refurbishment and Renovation Finance Projects

Typically non-structural work:

  • Auction properties
  • Reposessions
  • HMO Refurbs
  • Buy to let houses
  • Buy to let flats
  • Multi-unit property
  • Non-leting condition

Pre-Work for Light Refurbishment

Day one loan to value

Borrow up to 80% of the purchase price or pre-work day-one value.

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After Works for Light Refurbishment

Improved value LTV After the renovation work has completed borrowing can be increased to a maximum of 85% of the finished property value even within 6 months of purchase.

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Light Refurbishment Details

Light refurbishment mortgage products allow purchase of residential property needing repair works and renovation. Conventional lenders will not offer mortgages against property that are not immediately habitable or are in poor condition such that it cannot be let or achieve the market rent.

The range light refurb products offer a retention-free funding solution for landlords and property investors wishing to purchase property requiring refurbishment prior to renting or resale.

Properties requiring modernisation, decorative attention and general renovation such as replacement of kitchen or bathroom fixtures, may not be immediately habitable upon purchase yet offer property buyers opportunity for a profitable investment.

Often refurb properties can be renovated and turned around in just a few months to either retain as a rental property or resale for capital gain.

Light refurbishment mortgages offer lending at pre-refurb without retention of funds.

Medium Refurbishment

Medium Refurbishment Requirements

Acquisition & refinance for light refurbishment and renovation projects.

  • Residential investment
  • Refurb to sell
  • Refurb to rent
  • £65k to £15m
  • 1 Day to 18 months refurbishment
  • Term mortgages
  • Bridging facilities
  • Refinance within 6 mths
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Extent of Works for Medium Refurbishment

Allows works as per medium refurbishment and renovation, and works including:

  • Internal reconfiguration
  • New flooring, doors, windows, etc.
  • Property conversions
  • Change of use
  • Works exceeding 15% day 1 value
  • Work requiring planning consent
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Medium Refurbishment Details

Medium extent refurbishment products developed for clients purchasing property requiring more extensive refurbishment or renovation than light refurbishment products allow. Extent of work may include internal reconfiguration and conversion of single dwellings into multi-unit residential let property and HMOs. Refurbishments can include work under permitted development rights such as house extensions and loft conversions. Property conversions, where change of use is already granted, can also be accommodated by medium refurbishment. Planning consent should already be in place before financing. Work is generally limited to being of a non load-bearing nature but may include remedial work to floor structure, replacing doors and windows, and limited repairs to roofing. Cost of works can be as much of 30% of the day one value. Interest roll-up can also be arranged for periods of up to 6 months to assist cash flow during renovating period.

Medium Refurbishment and Renovation Finance Projects

Allow all work as per light refurbishment, including:

  • Uninhabitable property
  • Converting to HMO
  • Conversion to flats
  • Change of use
  • Extensions & loft conversions
  • Mixed use property

Pre-Work for Medium Refurbishment

Day one Loan to value Borrow up to 70% of the purchase price or pre-work day one value

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After Works for Medium Refurbishment

Improved value LTV After the renovation work has completed borrowing can be increased to a maximum of 85% of the finished property value even within 6 months of purchase.

Heavy Refurbishment

Heavy Refurbishment Requirements

Acquisition & refinance for light refurbishment and renovation projects.

  • Residential investment
  • Refurb to sell
  • Refurb to rent
  • £65k to £15m
  • 1 Day to 18 Mths refurb
  • Short term funding
  • Lending Pre-planning
  • Refinance within 6 mths
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Extent of Works for Heavy Refurbishment

Allows works as per heavy refurbishment and renovation, and works including:

  • Structural alterations
  • Structural remedial work
  • Property conversions
  • Change of use
  • Lending at pre-planning
  • Cost of works up to 40% MV
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Heavy Refurbishment Details

Heavy refurb finance is available for refurbishment projects incorporating more extensive work including structural alterations, extensions and internal reconfiguration. Works requiring building regulations approval can also be accommodated. Funding can also be provided for projects requiring planning consent and change of use, such as converting a single dwelling into several self-contained flats or multi-unit residential accommodation. Heavy refurbishment products are aimed at individuals experienced in refurbishment and similar property renovation projects. Total cost of works can be as much as 40% of the day one market value or purchase price. Interest can be rolled up for 6 months if required and option to exit to a term mortgage from 2-30 years.

Heavy Refurbishment and Renovation Finance Projects

Allows all work as heavy refurbishment, including:

  • Pre-planning consent refurbs
  • Pre-planning consent acquisitions
  • Planning gain conversions
  • Converting to HMO
  • Conversion to flats
  • Change of use

Pre-Work for Heavy Refurbishment

Day one Loan to value Borrow up to 70% of the purchase price or pre-work day one value

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After Works for Heavy Refurbishment

Improved value LTV After the renovation work has completed borrowing can be increased to a maximum of 85% of the finished property value even within 6 months of purchase.

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Available on-line at www.btl-direct.com