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If you are looking to refurbish a property you will know that timing matters. The materials you want to use, contractors, deadlines and resale windows won’t wait around for you. You will also know that choosing to use a traditional lender is often slow, paperwork-heavy and is rarely aligned with real-world project pressures.
This is why investors, landlords and homeowners often turn to refurbishment finance through a bridging loan. This is because bridging loans are fast, flexible and are built around the speed in which your property development works.
We specialise in rapid decision-making and even faster funding, often within 48 hours, this means that you can secure the finance you need without any endless delays.
What is a refurbishment bridging loan?
Refurbishment bridging loans are a form of short-term finance, used to fund property improvements, renovations, conversions or upgrades. It’s commonly used for the following reasons:
- A property you own needs work before you refinance or sell
- When a mortgage lender won’t lend until your improvements have been complete
- You need a quick cash injection
- You’re working to increase value, improve yield or make a property mortgageable
In simple terms: It bridges the gap between the purchase of a property and the exit you have in place.
Light vs heavy refurbishment loans
Not all refurbishment projects are the same. Lighter refurbishment projects often require fresh paint, a new kitchen or bathroom or other more simple cosmetic updates. A heavy refurbishment project will often include structural work, layout changes or an extension or extensions.
- Light refurbishment: This is often cosmetic or non-structural improvements
- Heavy refurbishment: Structural changes, conversions, extensions and major renovations
Knowing the difference between these two types of refurbishments matters as your funding structure, interest, risk profile and lender appetite can all change depending on the scale of the project.
Typical loan amounts for refurbishment bridging
The variation of refurbishment loans is surprising; however, there are some common bridging loan amounts which are used for refurbishments, such as:
- £50,000 – £150,000: Usually used for lighter renovations
- £150,000 – £500,000: For larger refurbishments or upgrades in multiple rooms
- £500,000 – £2,000,000+: Commonly used for heavy, structural or commercial projects
At Goldhill Finance Limited we arrange tailored solutions, so whether you’re improving a single buy-to-let or upgrading a portfolio asset, the funding we provide can be structured around your plans.
Why investors choose refurbishment loans over traditional finance
An investor will often choose a refurbishment loan over traditional finance for many reasons, banks are slow, timelines can collapse quickly and opportunities don’t hang around.
A refurbishment bridging loan will allow you to:
- Move fast when a property becomes available
- Fund works that other lenders won’t support
- Keep control of your schedule
- Increase the value of property or properties before refinancing
- Make unmortgageable properties mortgageable
Put bluntly: If speed and flexibility matter, this route wins and is the one to go down.
Choosing the best refurbishment loan
Everyone is searching for the best refurbishment loan, but what does “best” actually depend on? Below are some factors that you should take into mind:
- The speed in which you are accepted or the funds are provided
- The overall cost of your loan
- The criteria for lending
- The exit strategy you have in place for your loan
- The level of refurbishment your project needs
- Your experience and project profile
By working with an experienced refurbishment loan lender like Goldhill Finance you’re not stuck battling rigid requirements. You will always get clarity, realistic lending terms and a team that understands property.
Using a refurbishment loan calculator
Before you dive into a project, most smart investors will run the numbers first. Tools like a refurbishment bridging loan calculator can help you to estimate your borrowing potential, the costs, loan-to-value and how affordable the bridge loan is. Although a calculator won’t replace expert guidance, it can help to shape your expectations early on.
What about homeowners?
It’s not just investors that can benefit from this type of loan. Some clients use bridging-based home improvement loans when remortgaging isn’t an option you can choose. This form of finance is also perfect for those who can’t wait months for the approval of a loan.
Why choose Goldhill Finance?
The decisions we provide are quick, often in 2 hours. Our focus will always be to make sure you get you funding need as soon as possible so that your refurbishments can actually start.
If you are looking for a company that can provide you with refurbishment finance that works to real-world timelines, along with a team that understands property, Goldhill Finance Limited sits firmly ahead of the pack. Get in touch with us today!