What Is a Property Refurbishment Loan?

Property refurbishment loans are a type of short-term finance designed to fund renovation, improvement, or conversion works on residential or commercial property. Whether you're a landlord, investor, or homeowner, refurbishment finance helps you unlock value from tired or underperforming properties by funding upgrades and modernisations.

This can range from light cosmetic improvements (like painting and flooring) to heavy structural refurbishments or full-scale conversions.

There are typically two types:

• Light refurbishment loans – for non-structural work that doesn’t require planning permission.

• Heavy refurbishment loans – for major works such as extensions, loft conversions, or reconfiguring the internal layout, often requiring building regulations approval.

Common Uses of Refurbishment Finance

Refurbishment loans are ideal for:

• Buying and renovating properties to sell or let (Buy, Refurbish, Refinance, Rent – BRRR strategy)

• Upgrading rental properties to meet modern standards or increase rental yield

• Converting single dwellings into HMOs or flats

• Adding value prior to sale or remortgage

• Improving a property that’s unmortgageable in its current state

• Auction purchases that require fast completion and improvement works

Typical Loan Terms & Key Features

Loan size: £25,000 to £5 million+

• Loan-to-value (LTV): Up to 75% of the property value (or higher with additional security)

• Term length: 3 to 18 months (short-term, with flexible exit strategies)

• Interest: Usually rolled-up or retained, with no monthly payments

• Funding speed: Approvals can be completed in as little as 5–10 days

Funds are typically released quickly and may be provided in tranches depending on the scale of the refurbishment.

Who Can Apply for a Refurbishment Loan?

Refurbishment finance is available to:

• Property investors and landlords

• Developers and builders

• First-time buyers (in some cases)

• Limited companies and SPVs

• Self-employed borrowers

No long trading history is needed, and loans can be secured against residential, semi-commercial, or commercial properties.

Benefits of Property Refurbishment Finance

Fast access to funding – ideal for time-sensitive projects or auction purchases

1. Increases property value and rental potential

2. Can be used as part of a BRRR or flip strategy

3. Helps improve energy efficiency and meet rental market standards

4. Enables purchases of uninhabitable or non-mortgageable properties

Need Finance for a Refurbishment Project?

Whether you’re looking to upgrade a buy-to-let, convert a property into an HMO, or renovate for resale, our team can help you access flexible property refurbishment loans tailored to your needs. We work with specialist lenders who understand the value-add nature of refurbishment projects.

Contact us today for expert advice and a free quote.