The Mortgage Cafe

Finance for Heavy Refurbishment of Residential Investment Properties


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
  • Property conversions
  • 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.

  • Extensions
  • loft conversions
  • Internal reconfiguration
  • Structural works
  • Pre-planning acquisition
  • Change of use
  • Basement conversions

Quote Refurbishment Mortgages & Finance


HMO Refurbishment

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.

Conversions of Former Guesthouses, Hotels and Public Houses

Conversions of guesthouses, former hotels and public houses can be funded via heavy refurbishment. HMOs of up to 20 rooms with multiple kitchens are permitted, with remortgage finance to a term product available.


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.

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
  • Structural works
  • Building extensions
  • Internal reconfiguration
  • Cost of works up to 40%*

Pre-planning and Change of use Acquisitions

Property without planning consent approved for its development may be acquired using heavy development finance with pre-planning refurbishment products. Acquisitions of former hotels and guesthouses with intention to be converted to HMO, could be funded before change of use has been granted. Change of use (C1 to C4) would be required before renovation can commence.


The Heavy Refurbishment Solution

Heavy refurbishment products are suitable for experienced property developers with a demonstratable track record of property refurbishment. The facility is suitable for developers who require finance to carry out property refurbishment incorporating some structural building work or to convert a property for residential use. The refurb may include converting a single building into multiple letting units, self-contained flats or as home of multiple occupation (HMO) accommodation with multiple tenancies. Heavy refurbishment loans cater for longer term refurb projects up to 18 months in length. With no early repayment charges, after completion of the project, the client can choose to sell the property or switch to a term mortgage product.

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

Request Call Back

Available on-line at