The aesthetic of a property, whether commercial or residential, is essential to its ability to provide income for its owners through selling or renting the property. Property refurbishment loans are a type of secured loan, allowing property developers and landlords to make small improvements to a building in oder for them to put the property on the market. These loans ensure that projects such as a renovating the bathroom or kitchen will increase the value and desirability of the asset.
Types of property refurbishment loans available
There are two choices of loan that can be arranged for these circumstances, light and heavy.
- Light: Light refurbishments include small, cosmetic changes such as rewiring, internal redecorating or new facilities installed.
- Heavy: A heavy refurbishment loan will be required in the event of any structural changes needed, especially those that will require planning permission.
It is important to note regarding either of these options to assess whether the added value is greater than the amount secured. Property refurbishment loans are calculated on the predicted value of the property at sale or the rental income and is usually provided in two instalments.
Designed in purpose to be a short-term loan, repaying the funds begins either when the property is sold, or in rental cases, the improvement project has been completed.
Lenders have assorted products, rates and criteria for both light and heavy refurbishment requirements and shows the difference in appetite for specific cases. Companies in all sectors have areas they champion including companies interested in community projects and others that have a heavy emphasis on eco-friendly developments.
With a large portfolio of lenders, both mainstream, high street banks, to others in more specialist areas, InvestGrow can source the best possible rates and terms for property refurbishment loans for our clients. Your situation and needs are unique, and we can account for this, ensuring you get the best possible deal.
If you require property refurbishment loans for a short period of time or need to gain access to funds quickly, a bridging loan or bridging finance would be the easiest and most sensible option.
Using the funds as a ‘bridge’ between one step and the next, this option can give you time to arrange a more long-term financial option. A bridging loan can be used on certain commercial properties, however, there has to be a concrete exit in place for the repayment. Our large portfolio of lenders should be able to find the best deal for you.
Refurb-to-Term loans for Investment properties
Many lenders now offer a ‘Refurb to Term’ loan or mortgage, which allows purchasers to buy, refurbish and tenant the property. This process is a satisfactory statement for the lender, concluding this is the exit strategy for the bridging loan.
Some lenders now accept the application for the bridging finance, as the refurbish to term application form, making the process a lot more streamlined and simplified. InvestGrow can help you find the ideal product for your requirements.
How do I apply?
To apply for any type of property refurbishment loans, bridging finance, or a refurb to term mortgage, speak to one of our advisors and we can begin the process. Please contact us here or start an instant chat with one of our experts.