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Where refurbishment stops being a bridge: structure, change of use, drawdowns.
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Below market value purchase
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Light refurbishment finance
Bridge plus refurb tranche, and where the development boundary sits.
Also structuredBridge to let and refinance
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Fund the purchase and 100% of the works, with interest rolled to exit.
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Bridge it › Light refurbishment finance
Light refurbishment is the band where works are cosmetic, nothing structural is touched and no planning is required. In practice that means works costing up to around 25% of the property's day one value: kitchens, bathrooms, rewiring, redecoration, windows.
Staying inside that band is worth real money. Light refurbishment is funded as a bridge with the works money advanced up front or in a few drawdowns, no monitoring surveyor in most cases, and a straightforward valuation. Cross into 25% to 50%, or touch anything structural, and the deal moves to staged drawdowns and a surveyor signing off each one.
The trap is drift. A schedule that starts cosmetic and grows a knocked-through wall or a loft conversion has changed product, usually after the facility is agreed, and the lender finds out at the first inspection rather than at underwriting.
Funds the purchase and the works, drawn against the schedule.
The works scoped against the band, deliberately
We look at the schedule against the light, medium and heavy thresholds before approaching anyone, because which side of the line you sit on changes the lender, the price and the drawdown mechanism.
Funded up front, not in arrears
Light refurbishment can advance the works money as a lump sum at completion or in a few drawdowns as the work progresses, so the works are funded rather than reimbursed. That is a working capital difference worth protecting by keeping the scheme inside the band.
The uplift evidenced
The end value has to be supported by comparables at the specification you are actually delivering. A valuer will not credit an uplift for a kitchen that is not in the schedule.
A short term with a real exit
These are twelve month facilities against a quick turnaround. Sale, refinance to a buy to let mortgage or a let and hold all work, but the route needs to be chosen before you borrow.
Which lenders play here
Most unregulated bridging lenders will do light refurbishment; it is one of the most competitive corners of the market, and the value is in the terms rather than the availability.
25%
Works to day one value, light
75%
Gross LTV, up to
Up front
Works funded, not reimbursed
12m
Typical term
Indicative, and not an offer. What a lender will actually do depends on the scheme, the borrower and a full valuation.
What to have ready
Bring these and we can tell you where you stand.
Each one is something a lender will ask for. Having it early is the difference between a fast answer and a slow one.
✓A schedule of works with costs, however short
✓Purchase price or current value, and the end value with comparables
✓Confirmation nothing structural is involved and no consent is needed
✓Who is doing the work and over what period
✓Your exit: sale, refinance to term, or letting
✓Your contribution and where it is coming from
Related
Worth reading on this
Article
What is Heavy Refurbishment Finance and When Does it Become More Than a Refurb?
Article
Refurbishment Bridging Finance: Light, Medium and Heavy
Case study
£5m GDV North Wales Development + North London Refurbishment
Next
Related in this pillar.
Common questions
The questions this product raises.
What counts as light refurbishment?
Cosmetic works with nothing structural and no planning needed: kitchens, bathrooms, rewiring, redecoration, windows. In practice that means works costing up to around 25% of the property's day one value. Inside that band it is funded as a bridge. Above it, or once anything structural is involved, the deal moves to staged drawdowns signed off by a surveyor.
How much of the refurbishment cost will a lender fund?
Often all of it, as long as total borrowing stays within the lender's cap, commonly up to 75% of value gross. The works money can come as a lump sum at completion or in a few drawdowns as the work progresses, so the works are funded rather than reimbursed. You fund the deposit, the costs and whatever falls outside that cap.
What happens if my works turn structural partway through?
The product changes. A schedule that starts cosmetic and grows a knocked-through wall or a loft conversion has become a different loan, usually after the facility is agreed. The lender finds out at the first inspection rather than at underwriting. Scope the works against the band before you apply, not after.
What exit does a light refurbishment bridge need?
A real one, chosen before you borrow. These are typically twelve month facilities. A sale, a refinance to a buy to let mortgage, or letting and holding all work, but the end value has to be supported by comparables at the specification you are actually delivering.
Bring us the detail.
Send what you have. We will tell you what is fundable and what needs work before anyone approaches a lender.
Specialist property finance for developers who want the numbers to survive underwriting.
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Fundingwise Limited is not authorised or regulated by the Financial Conduct Authority, and arranges unregulated finance only. That means lending secured against commercial property, or against residential property that is not, and will not be, occupied by the borrower or an immediate family member as a main residence. We do not advise on or arrange regulated mortgage contracts or regulated bridging loans. Because this finance is unregulated, FCA conduct rules and access to the Financial Ombudsman Service do not apply. Fundingwise Limited is registered in England and Wales, company number 13750788.