Refurbishment bridging loans.
Buy it, fix it, refinance or sell. Short-term funding for works that make a property mortgageable, from a team that refurbishes buildings for a living.
Light or heavy refurbishment?
Lenders split refurbishment into two, and which side you are on decides your lender, your LTV and your rate.
Light refurbishment: cosmetic and non-structural. New kitchen, bathroom, rewiring, redecoration, general modernisation. No planning permission, no building regulations, no change to the footprint or use. Wider lender market, better terms, faster.
Heavy refurbishment: structural or regulated works. Extensions, changing the number of units, structural alterations, anything needing planning or building regs, conversions between use classes. Fewer lenders, often staged drawdowns, closer to development finance than to a simple bridge.
Where the line sits varies by lender, and it is not always obvious. Adding a bathroom is light; moving a load-bearing wall to fit it is heavy. Converting a house to an HMO can be either, depending on the work. Getting classified correctly before you apply is half the job: misjudge it and you are on the wrong panel at the wrong price.
At the heavy end, this shades into development finance and is priced and drawn like it. Development finance →
Buy, refurbish, refinance: how the round-trip works.
- 1. Buy on a bridge. Often a property a term lender will not touch because it is unlettable or unmortgageable in current condition. Auction lots, tired stock, empty commercial units. Auction finance →
- 2. Refurbish. The bridge funds the purchase and, on many products, some or all of the works. You add the value.
- 3. Refinance. Once the property is habitable, lettable and mortgageable, you roll onto a term mortgage (a company buy-to-let or commercial mortgage) or sell. The refinance repays the bridge.
This is bridge-to-let when the exit is a rental mortgage, and it is how a lot of company landlords build a portfolio: buy cheap and broken, fix, refinance at the higher value, recycle the capital. Limited company buy-to-let →
The trap in the round-trip: the six-month rule. Some term lenders will not remortgage within six months of purchase, or will lend against your purchase price rather than the new, higher value. On a refurb where you have added serious value, that difference can break the deal. Confirm your exit lender's stance before you draw the bridge, not after the works are done.
What refurbishment bridging costs.
Priced monthly like all bridging, so cost depends on how long the works take plus the refinance, plus arrangement fee, valuation and legals. Heavy refurb with staged drawdowns is structured, and priced, differently from a simple light-refurb bridge.
We do not publish a fixed rate: it depends on the works, the LTV, the property and your exit. We will give you a real figure for your specific project, and help you build in contingency, because refurbishments run over. Always budget more time and more cost than the schedule says.
What lenders check.
- The works. Scope, cost, and whether they need planning or building regs. A clear schedule of works with costings is what separates a fundable application from a vague one.
- Light or heavy. As above, it sets the panel.
- The exit. The single most important thing. What refinances or buys this once it is done? A lender wants to see the property will be mortgageable or saleable at the end: the finished value, the likely term lender, the rental if it is bridge-to-let.
- The uplift. Refurb finance is about added value. Lenders look at the projected value after works and how realistic your numbers are.
- Your experience. Have you done this before? A first refurb is fundable but the panel narrows. A track record of completed projects widens it and improves pricing.
- The company. SPV, SIC codes, personal guarantees. SPV mortgages →
Can you extend a bridging loan?
Sometimes, but treat it as a fallback, not a plan.
If the works overrun or the refinance is delayed, some lenders will extend the term, often at a cost, and sometimes at a higher rate. It is not guaranteed, and a bridge that has run past its term without an agreed extension is an expensive, stressful place to be.
Better: build realistic contingency in from the start. If the works are "eight weeks", finance for twelve. If the refinance is "straightforward", assume it takes longer. The cost of a slightly longer bridge is small; the cost of an overrun with no exit is not.
We will size the facility for the project that actually happens, not the optimistic one.
It turns on the light-vs-heavy call and the exit.
Refurbishment lending turns entirely on the light-versus-heavy call and the credibility of the exit, both of which brokers read better than borrowers, and both of which are invisible on a lender's product page.
- Classify the works correctly so you land on the right panel first time
- Pressure-test the exit, because a refurb bridge with a weak exit is a trap
- Match heavy refurb to lenders who do staged drawdowns properly
- Build contingency into the term so an overrun does not become a crisis
- Tell you when it is really development finance
We refurbish buildings ourselves. We know works overrun, valuations surprise, and the exit is everything. Limited companies and SPVs only.
The works, the exit, and a real figure.
- Call07977 486886
- Emailinfo@huntergrey.co.uk
- Office139-143 Union St, Oldham, Greater Manchester, OL1 1TE
- WhatsAppMessage us
Bridging hub: Bridging finance → · Model it: calculator →
Refurbishment bridging, answered.
What is a refurbishment bridging loan?
Short-term finance to buy and renovate a property, repaid by refinancing onto a term mortgage or selling once the works are done. It funds properties a normal mortgage will not, because they are unmortgageable in current condition.
What is the difference between light and heavy refurbishment?
Light is cosmetic and non-structural: kitchens, bathrooms, decoration, no planning needed. Heavy is structural or regulated: extensions, unit changes, anything needing planning or building regs. Heavy has fewer lenders and is often drawn in stages.
Can I refinance a bridging loan onto a mortgage?
Yes, that is the standard exit. Once the property is habitable and mortgageable, you roll onto a term mortgage that repays the bridge. Watch the six-month rule: some lenders will not remortgage within six months of purchase.
Does refurbishment bridging cover the works as well as the purchase?
Often, yes. Many products fund the purchase plus some or all of the works, sometimes in stages. It depends on the lender and whether the works are light or heavy.
Can you extend a bridging loan if the works overrun?
Sometimes, usually at a cost, and never guaranteed. Better to build contingency into the original term than to rely on an extension.
Can I use refurbishment bridging to convert a house to an HMO?
Yes, it is a common route. Buy on a bridge, convert, then refinance onto an HMO mortgage once it is licensed and let. Mind the planning: Article 4 areas need permission. HMO mortgages →
Do you fund refurbishment of my own home?
No. Works to a property you live in are regulated lending. We work with companies refurbishing property to let, sell or refinance.