Finance for Heavy Refurbishment of Residential Investment Property
The Heavy Refurbishment Solution
Heavy Refurbishment Solution Details at a Glance
First Legal Charge
70%LTV on purchases
70% of improved value
No early redemption charges
Roll up of interest
Interest only available
up to 18 mths renovation
No minimum term
Loans from £60k to £15m
Extent of Works for Heavy Refurbishment Solution
Heavy refurbishment finance can be utilised to purchase (or refinance), property needing more extensive renovation work than permitted with light and medium extent refurbishment finance.
Heavy refurbishment work can incorporate change of use, structural alterations, and internal reconfiguration making it suitable for conversions to multi-unit and HMO property.
Change of use
Works converting a property to multiple letting units or to HMO can be accommodated.
No HMO licence will be required upon purchase or during the refurbishment phase. Planning consent, where required, needs to be in place before refurbishment can start. Funding to purchase property can also be secured without detailed planning permission on a pre-planning basis.
Property Conversions to HMO
Heavy refurbishment can be used when converting a property to a house of multiple occupation (HMO). Internal reconfiguration can be carried including work of a structural nature.
Planning consent and any change of required 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 can be obtained after the refurbishment and conversion work has completed.
Conversions of Former Guesthouses, Hotels and Public Houses
Pre-planning and Change of use Acquisitions
Heavy Refurbishment Extent of Works
Structural remedial work and alterations can be undertaken with heavy refurbishment finance. Projects incorporating change of use like converting single dwellings to self-contained flats can also be accepted under heavy refurbishment products.
Planning permission approval
Permitted development rights
Building regulations control
Cost of works up to 40%*
Heavy Refurb Working Example #1
Conversion of a former guesthouse into a 8 room HMO with 2 Kitchens: Purchase price: £425,000
Loan amount 70% LTV: £297,500 Cost of works: £165,000 Refurb term: 8 months
End value: £795,000 Refinance mortgage amount 75% LTV: £596,250 Additional capital raise: £298,750
Heavy Refurb Working Example #2
Structural renovation and conversion of a large single dwelling into a 6 room HMO with 1 Kitchen:
Purchase price: £225,000 Loan amount 70% LTV: £157,500
Cost of works: £85,000 Refurb term: 8 months
End value: £435,000 Refinance mortgage amount 75% LTV: £326,250 Additional capital raise: £168,750