Refurbishment Finance Calculator

Refurbishment finance is a short-term loan for renovating or converting properties. 'Light refurb' (cosmetic work up to 15% of property value) uses standard bridging terms. 'Heavy refurb' (structural work, change of use) uses higher rates with staged drawdowns. Typical terms are 6-18 months with interest rates of 0.55-1.2% per month.

Light refurb: up to 75% of purchase price or 70% of open market value. Heavy refurb: up to 70% of purchase price plus 100% of refurb costs, subject to 70% of gross development value (GDV). Lenders require detailed schedules of works and professional valuations.

Light refurb: 0.55-0.85% per month (6.6-10.2% pa). Heavy refurb: 0.75-1.2% per month (9-14.4% pa). Rates depend on LTV, experience, project complexity, and exit strategy. Most refurb loans roll up interest (added to the loan balance) rather than requiring monthly payments.

For light refurb (like-for-like replacement, decoration, new kitchen/bathroom), planning permission is usually not required. For heavy refurb involving structural changes, extensions, or change of use (e.g., commercial to residential), planning permission or permitted development rights are typically needed.

Lenders want to see a clear exit strategy: refinance onto a buy-to-let mortgage, sell the completed property, or refinance onto a term loan. The exit must be achievable within the loan term. Without a credible exit strategy, lenders will decline the application.