Specialist
Property Refurbishment Finance Service
Require property finance advice?
Speak to us today...
Require property finance advice?
Speak to us today...
When you are looking to make the most of your property investment, renovations and refurbishment are high on the list of priorities - but what is the best way to find the funding to turn plans into action? We’re here at Clifton Private Finance to help you obtain high-value property refurbishment finance that leverages your assets for a cost-effective tailored solution for both commercial and residential use.
Finding the right finance structure is essential to keep costs down and provide the financial stability you need to move confidently on your renovation project. Whether you are looking for a short-term funding solution for a quick property flip, or a staged payment release schedule to best manage interest rates and cost, we can help.
The most common loan leveraged on property is a mortgage. Remortgaging your property to release capital tied up in equity can provide the funds you need to complete the planned refurbishments, providing a long-term loan solution with low interest rates and stable monthly repayments.
If your personal or business circumstance meet the criteria required for a full remortgage, and your project timescale is long enough for the full underwriting process, then a mortgage can offer the best rates on the market. Mortgage lenders, however, are keen to keep risk low and will reject mortgages on property that’s in a poor condition, making mortgages less suitable than other property finance options for significant reconstruction projects.
|
Consideration |
Evaluation |
|
Interest rates |
Mortgages offer some of the very best rates available. |
|
Loan size |
With high LTV possible, mortgages can provide significant funds for both property purchase and renovation work. |
|
Term length |
The very long term length of a mortgage will keep monthly payments low, but also brings a debt obligation that lasts for many years. |
|
Payment structure |
Standard monthly repayments are easy to accommodate and can be kept low. |
|
Application process |
Applying for a mortgage involves comprehensive valuation, paperwork, and legal work. |
|
Timescale |
Mortgages include complex underwriting which can take weeks to approve. |
|
Assessment |
Full credit checks and affordability tests will be applied. Landlords will need thorough rental yield forecasts. |
|
Flexibility |
Mortgages are relatively inflexible, requiring short fixed terms to provide regular evaluation windows. |
|
Additional considerations |
Mortgage lenders have strict guidelines which prevent mortgages on derelict buildings. It may be hard, or impossible, to obtain a mortgage for buildings prior to renovation works being completed. |
|
Overall |
Mortgages offer low interest rates and low monthly repayments in exchange for speed and flexibility. Their strict criteria, however, can lead to rejection. Rather than first-level finance for larger-scale renovation and construction projects, mortgages often act as a long-term exit strategy to support shorter-term bridging finance. |
Mortgages come in a wide range of options and varieties, including:
For larger-scale renovation and construction projects, development finance provides medium- to long-term funding that provided lump sums in key stages, earmarked for specific phases of construction. Development finance is designed to keep interest to a minimum by drawing on capital only as needed.
Development finance can often be obtained using the projected Gross Development Value (GDV) of the finished development rather than the current market value of the property, providing far greater levels of funding than could be obtained through a mortgage. A comprehensive business plan is essential to secure funding, with specialist broker support key to finding a suitable lender. Clifton Private Finance are the perfect partner to find the right lender - an aligned specialist who understands the industry and will take the time to thoroughly evaluate your project plans before making a decision.
|
Evaluation |
|
|
Interest rates |
Competitive interest rates from specialist lenders. |
|
Loan size |
With a comprehensive business plan, loan ceilings can be calculated based on the final development value, rather than current market figures, leading to much higher sums than other options. |
|
Term length |
Development finance is a medium- to long-term option with staged capital drawdown. |
|
Payment structure |
Repayment is based on an exit strategy, typically through sale of the finished development. |
|
Application process |
Comprehensive business planning and forecasts can make applications complicated. |
|
Timescale |
Full business plan evaluation and underwriting means loans take time to complete. |
|
Assessment |
Business finances and credit history must be in order. GDV forecasts should be well-supported. |
|
Flexibility |
Drawdown structure and strict exit strategy can be inflexible. |
|
Additional considerations |
Development finance requires specialist support for a successful application. |
|
Overall |
For larger-scale developments, with full planning permission and comprehensive business plans, development finance provides a thorough level of funding. It can be used as both first-level finance, or in conjunction with bridging finance as a medium-term exit strategy when expediency is essential.
Bridging loans provide a great level of flexibility and boast a rapid application process that’s designed to both take advantage of opportunities, while also offering alternative application criteria to traditional finance - making them perfect for use in property refurbishment.
Designed as short-term lending, bridging finance leverages the equity in both the main property plus any additional properties to obtain significant levels of funding that can be used for renovation and property purchase. Its exit-based structure means bridging finance underwriting is flexible, providing funds for projects that might otherwise be rejected.
One example is with renovating derelict properties. Here, traditional mortgage financing would be rejected due to specific criteria regarding the habitability of the property; bridging finance offers the capital needed to undertake the core renovations to bring the property up to a standard where traditional long-term finance can take over. Fast, efficient, and flexible, bridging finance is often considered the most effective form of refurbishment finance.
|
Consideration |
Evaluation |
|
Interest rates |
Slightly higher than alternatives. |
|
Loan size |
Loan sums are calculated based on securities, allowing for large sums to be acquired by leveraging multiple properties alongside the main development. |
|
Term length |
Short term finance, typically between 12 and 18 months, with no early repayment penalties and maximum flexibility. |
|
Payment structure |
Exit-based repayment, through remortgage or property sale. |
|
Application process |
Fast application available with specialist broker support. |
|
Timescale |
Loans are processed and made available extremely quickly to take advantage of opportunities. |
|
Assessment |
Primarily leveraged on property-based security, suitable for borrowers with poor credit. |
|
Flexibility |
Can be repaid early to minimise interest for complete flexibility. |
|
Additional considerations |
A clear exit strategy must be in place. |
|
Overall |
Bridging finance is a powerful solution that can be implemented quickly, providing the funds needed to start renovations or boost budgets midway through. Flexible repayment means interest costs can be kept at a minimum. Using a mortgage as an exit strategy provides long-term security, making bridging the perfect funding partner to move forward with your refurbishment project. |
Selecting the best finance is all about your project parameters:
|
Need |
Finance |
Details |
|
Keeping budget low |
Mortgages |
With the lowest interest rates and long-term repayment schedule, mortgages are the cheapest option. However, the application process can be slow and your project scale may be limited. Good for homeowners looking to make alterations and improvements to the home. |
|
Large-scale development |
Development finance |
If you are looking to renovate multiple properties or develop commercial buildings, then development finance provides the best answer. Long-term projects benefit from staged drawdown to minimise interest. |
|
House flipping |
Bridging finance |
Buying a run down property is impossible with a standard mortgage, and leveraging the equity in one to pay for renovations is similarly difficult. Bridging finance offers the speed and flexibility needed to buy a property at action, pay for its refurbishments, and sell it back to the market as a modernised, quality home. |
|
Home accessibility adaptations |
Mortgages |
Second-charge mortgages are often extremely efficient at releasing enough equity in the home to pay for conversions such as walk-in showers, or kitchen modifications. |
|
Derelict building conversion |
Bridging finance |
With security provided by your current home, bridging can be obtained for buildings in a very poor condition, allowing for a quick start to construction with the funding replaced in time with a traditional mortgage. |
|
Home conversion projects |
Mortgages |
A full remortgage will provide a financial restructuring that allows you to upgrade your home without adding too much strain to monthly finances. |
|
Snapping up opportunities |
Bridging finance |
Whether the opportunity is significant, such as obtaining land prior to planning permission to turn into a multi-property investment, or smaller, such as a significant sale on materials for a home conversion, bridging finance can move rapidly to provide the capital needed without delay. Later refinancing with either development finance or a mortgage can be put in place when the dust settles. |
|
Boosting funds mid-project |
Bridging finance |
If you start to run short of money half-way through a project, the impact can be significant and costly. Bridging finance can step in to keep the contractors working without long delays for refinancing. |
Whether your project is the addition of a downstairs toilet, or converting an old factory into flats, our experts at Clifton Private Finance have the experience you need to make it a success. With our holistic approach to funding, we’ll consider all the finer details of your circumstances and work with you to put a funding plan together than makes the best use of the different types of property refurbishment finance.
We have established relationships with the wide range of UK lenders, enabling us to put your project forward directly to decision makers - speeding up the application process and making sure you’re seen in the best possible light. To get your refurbishment project off the ground, call Clifton Private Finance today.
I approached Clifton Private Finance to help me get a mortgage as an Expat working in the Far East. I would normally 'cut out the middle man' on something like this and try to get myself a deal directly with the banks, but I am now sold on the broker concept and wouldn't hesitate to use Clifton Private Finance again. There were a number of complicating factors such as being an expat, the stamp duty holiday, the sheer amount I wanted to borrow and the fact I wanted it all wrapped up before the Stamp Duty holiday ended. It is clear to me now that the relationship that brokers have managed to foster with their banks means they can simply pull levers and make stuff happen that us ordinary folk cannot. Put simply, they are worth every penny, will take most of the stress out of the lending process, and seem to have access to deals that you just won't find on the internet. Thank you George and Jan for all your hard work!
James M
Luther was excellent. Very clear in his advice and explanations of products and was able to move things on very quickly when we ran into difficulties with the estate agents. Without a doubt I would recommend Luther to all friends, family and colleagues. Luther was a joy to deal with and took a lot of the stress out of a troublesome transaction, from my end. I would view Luther as real asset to Clifton Private Finance Ltd.
William W
The team at Clifton Private Finance has been outstanding, not only in helping me to obtain a mortgage on a slightly unusual home, but also in continuing to provide support and liaise with the lender and solicitors through to completion. Thank you for making the process of buying my first home much easier.
Chantelle S
Sam O'Neill, and the new lender he identified for me, worked tirelessly together using my time constraints, to make sure my mortgage application was completed on time. They are a brilliant company to work with, fast, efficient, open and transparent from the very beginning, and turned a seemingly impossible situation into a viable one. Sam was brilliant throughout the whole process and I would highly recommend him, and his colleague Helen, to anyone without hesitation, I cannot speak highly enough about them.
Myr B
I was incredibly lucky to find Clifton Private Finance after a search on line as their service has been more than exemplary. My point of contact was Sam 0’Neill and he was happy to help at every stage during the application of the bridging loan, making a stressful process much easier to deal with. He was always available by phone or email and gave prompt answers to queries I had as well as always getting back to me when he said he would. That to me is excellent customer service and I cannot thank him personally or the company enough for the support they have given me.
C Jefferey
Adam cannot thank you enough for all your support throughout this arrangement. You have gone more than the extra mile to support us. Without you we would not have got our dream retirement home. You have been most professional and personable. Liz and I would be more than happy if you wanted to use us a reference with respect to any future clients.
Nigel & Liz K - Bristol
You have certainly shown me that you do everything for your clients, including tolerating their excessive emails and questions for updates. I have been kept in the loop, from yourself, about why the delays were occurring (Nationwide, post etc) which I would like to highlight that I really appreciated. I certainly will be able to recommend you to others as and when the need arises.
Mr Morris
I recently contacted Clifton Private Finance after a Google search for bridging finance providers and was immediately struck by their efficiency and support. Forms were emailed over almost immediately and the necessary finance was arranged within a few days. None of the other companies I contacted came close to their professionalism, and the quote that I eventually received was impressive. Thank you Adam, your help has enabled us to reserve the house that we wanted and I certainly recommend you to others.
Mr M. R. - Oxford
Absolutely brilliant. The service was first class, got everything sorted efficiently and were always friendly. Any fees were negligible compared to the service offered. Robert was particularly outstanding.
Charles N
My advisor, Robert, was very helpful in finding the mortgage to suit me. He kept me up to date throughout the process and dealt with any issues when they arose.
Rowena C
