Refurbishment finance for property investors

Light refurbishment covers cosmetic works such as new kitchens, bathrooms, redecoration, and minor repairs — typically up to 15% of the property value. Heavy refurbishment involves structural changes such as extensions, conversions, or significant alterations. The classification affects which lenders and products are available, as well as how funds are released.

Most refurbishment finance lenders offer up to 70-75% of the property purchase price plus 100% of the refurbishment costs, subject to an overall cap on the gross development value (GDV). The exact amount depends on the property, the scope of works, and your experience. Provide Finance can introduce you to advisors who work across the full range.

Refurbishment finance is typically a short-term loan (6-18 months) with funds released in stages. The initial drawdown covers the property purchase, and further tranches are released as refurbishment milestones are completed and verified. Interest is usually charged monthly and can often be rolled up into the loan.

Common exit strategies include selling the completed property on the open market, refinancing onto a buy to let mortgage after works are complete, or a combination of both. Lenders require a clear, credible exit strategy as part of the application. Your advisor will help you present this effectively.

Yes. Many property investors use limited companies or SPVs for refurbishment projects. Specialist lenders offer refurbishment finance to corporate borrowers, and this structure can offer tax advantages depending on your circumstances. Provide Finance can introduce you to advisors experienced in corporate refurbishment lending.

Refurbishment finance can typically be arranged within 2-4 weeks, depending on the complexity of the project and how quickly valuations and legal work are completed. Having a detailed schedule of works, cost breakdown, and clear exit strategy ready helps speed up the process significantly.

In certain scenarios, funding structures may cover up to 100% of the purchase price where properties are acquired below market value. In specific cases, day-one equity release may also be possible depending on the lender and deal structure. Example structures we have supported include BMV acquisitions with stamp duty covered and a structured exit via refinance. All outcomes are subject to lender criteria, property valuation, and individual assessment. This is an example and does not constitute a guarantee.