Refurbishment Finance

Our refurbishment loan service for UK property provides: 

• Refurbishment finance from £50,000
• Monthly interest rates from 0.44% pm
• Lower rates for £1m+ loans
• £99 valuation options for properties up to £1 million
• Terms up to 36 months
• Loan to values up to 75%
• Interest roll up options
• Light refurb loans - a property that is uninhabitable, under permitted development rules, requiring internal renovation
• Heavy refurb loans - change of use, extensions, structural changes
• Finance for new build, conversion or refurbishment developments including mixed use and student accommodation
• Funding solutions from high street and private banks, specialist lenders, family offices, wealth managers and private investor fund groups

To get tailored advice on your options, call us at 0203 900 3040 or book a free consultation below.

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What is Property Refurbishment Finance?

Last Updated: 08/01/2025

Property refurbishment finance is a type of loan that helps people or businesses pay for renovations or improvements to a property. This can include small updates like repainting and new flooring or bigger projects like fixing structural issues or redesigning spaces. It’s often used by property owners or investors who want to increase the value or usability of a home, office, or other building. These loans are usually short-term and can be repaid once the property is sold, rented out, or refinanced. Lenders decide how much to lend based on the property’s current value, the cost of the work, and how much it will be worth after the renovations are done.

How Does it Work?

Property refurbishment finance works by providing you with the funds needed to renovate or improve a property, and the process typically follows these steps:

Application

You apply for the loan, detailing your refurbishment plans, the current value of the property, the estimated costs of the work, and the expected post-renovation value.

Assessment

The lender reviews your application, including the property's value, your refurbishment plans, and how you plan to repay the loan (e.g., through selling, renting, or refinancing the property).

Loan Offer

If approved, the lender offers you a loan based on the property’s current value and the potential increase in value after the refurbishment. Some lenders may release the funds in stages, depending on the progress of the work.

Refurbishment Work

Once you receive the funds, you can start the renovation. During this period, some lenders might inspect the property to ensure the work is being completed as planned.

Repayment

After the refurbishment is finished, you repay the loan in full. It’s important you establish how you plan to repay the loan in your application, as this is typically the main decider of your eligibility. Some options are through selling a property, refinancing to a mortgage or even through rental income.

Refurbishment Finance Calculator

Use our refurbishment finance calculator below to get an indicative quote of what a refurbishment bridging loan might cost you. 

 

What Does it Mean to Refurbish a Property?

Refurbishing a property means you’re restoring a property to ‘like-new’ condition. This could mean updating the décor, rewiring it, or replacing functional elements like the boiler or central heating system.

One great example of property refurbishment is a ‘house flip’, where the seller buys a property that needs work, and restores it to a better condition, usually injecting new life and character into it along the way.

But if you live in the same home for more than a couple of decades, it’s likely that you’ll undertake some level of refurbishment on it at some point.
Refurbishing is cheaper than renovating a property, which typically involves larger work such as knocking down walls. However, it can still be expensive due to rising resource and labour costs.

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Why is Refurbishing Important?

It’s common for refurbishment projects to cost more than £100,000, and they are widely regarded as equally if not more stressful than buying the house itself.

So why do people do it?

The UK has some of the oldest housing stock in Europe, many of which are grade I and II-listed buildings that the government protects. Space is not as readily available as it is in larger countries, so new builds are not as common as they are in areas with more building space.

But more than that, many fall in love with the idea of buying a house that has character, charm and history and giving it a new lease of life.

British housing stock might be a bit draughty and damp-prone, but the ample number of townhouses and romantic countryside cottages present a labour of love that a lot of buyers are willing to undertake, despite the price tag.

Another reason for refurbishment is maintenance. Even with the correct care, homes need to be rewired every 25 years, kitchen counters get worn out, and living room decor becomes drab and outdated.

And this is the basis of a lot of property flips. For those who want to buy an older building that’s been modernised and is ready to live in, we have keen entrepreneurs who earn a living through purchasing homes and restoring them for profit.

What Are Some Examples of Refurbishments?

Contrary to popular belief, refurbishing a home is a lot more than a lick of paint and some DIY.

Refurbishment can mean surface-level changes like painting and decorating, but it also means bigger tasks, such as:

• Replacing broken windows
• Tearing out an old bathroom or kitchen
• Re-tiling
• Replacing roofing

Jobs like this can be dangerous to complete without the correct experience and will usually need the help of a professional. Generally, the wider the scope of a refurb project, the more expensive it will be.

But when managed correctly, refurbishments can be rewarding projects serving to build equity in your property or provide a space that enhances your standard of living.

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What’s the Difference Between Renovation and Refurbishment?

The main difference between renovation and refurbishment is that renovations typically require planning permission.

While refurbishments aim to restore a building so that it can be lived in comfortably, renovation can mean conversions, combining rooms, reimagining a floorplan, or changing use.

Some examples of a renovation project are:

• Loft conversions

• Barn conversions

• Making an interior open-plan

• Making a house into multiple flats

• Pub conversions

• Extensions

As you can see, renovations require some level of development, more so than a refurbishment project. Renovations usually involve reimagining a space or adding to it in a way that transforms it into something entirely new. Refurbishments, on the other hand, tend to mean redecorating or ‘doing up’ a home to improve its liveability.

Is Refurbishing the Same as Repairs?

Yes and no. If a home requires a lot of repairs then it wouldn’t be remiss to say that you are refurbishing it by undertaking the necessary work. The odd repair here and there wouldn’t necessarily be considered refurbishing.

When applying for property refurbishment finance, it’s important to be clear about what you intend to use the funds for and have a good idea of how much the project will cost.

You could use refurbishment finance to replace a broken boiler or make energy efficiency upgrades on a rental property, for example, but this will typically cost much less than remodelling a bathroom, so it’s important to be specific with the lender when you apply.

Can Refurbishment Finance Be Used for Larger Projects?

The term refurbishment and renovation are often used interchangeably, so some renovations can be covered by refurbishment finance.

Generally, one of the advantages of refurbishment finance is that it’s flexible and can be arranged to suit your needs.

Some larger projects, however, may not necessarily be covered by refurbishment finance. Refurbishment loans can be used for extensions and loft conversions, but larger projects like barn conversions are more complicated and may require development finance.

If you’re not sure what your options are, it’s worth talking to a specialist broker who can match you with the right product.

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If you need property refurbishment finance, there are several good reasons to using our service:

• Unlock funding faster – We have working relationships with specialist renovation and development finance lenders and know all the likely roadblocks, which could delay your application, and how to avoid them. If speed is of the essence, using our service is highly recommended

• Access a wider range of lenders – Many refurbishment finance lenders do not deal directly with the public but only operate through specialist intermediaries

• Get the best deals – Access to low-cost finance

• Reduce your workload – Property refurbishments require a lot of work, with many different aspects of each project to stay on top of. Allowing a property refurbishment finance specialist to find your funding for you gives you one less thing to worry about, freeing up your time to focus elsewhere.

Related: How to Get a Bridging Loan To Buy, Refurbish and Sell a House

Find the best refurbishment finance deals

Clifton Private Finance is a UK-based, FCA regulated property development finance specialist broker.

Thanks to our established relationships with property refurbishment finance lenders across the market, we can quickly find you the best deals currently available, no matter what kind of refurbishment project you are undertaking.

Call us on 0203 900 4322 to discuss your requirements.

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