Refurbishment Loans

Refurbishment Loans

Most bridging loans are advanced in one single payment to assist with a purchase or refinance. However, in recent years, refurbishment loans have been designed to enable the costs of improving or converting a property to be funded by the lender as well on a multi-draw down basis.

They are a hybrid of bridging and development loans and allow borrowers to minimise their capital input into a project.


A developer is purchasing an office which has Permitted Development Rights to be converted into 6 apartments.

Purchase Price:           £800,000

Development Costs:  £400,000 [incl. contingency & all professional fees]

GDV:                             £1,500,000

Funding Solution:

Day One Net Loan:              £600,000 [75% LTV]

Further Refurb Funding:     £400,000 [100%]

Interest Rate:                        0.79% p.m. on drawn funds – fully rolled-up

Developer Cash Input:        £200,000 [just 16.67% of total costs]