UK Refurbishment Loan
As a way of adding value to their existing properties before renting or selling, property investors and landlords will often refurbish them. Applying for a refurbishment loan is one of the best ways an investor can upgrade their property.
What are the main categories of refurbishment finance?
Light refurbishment finance
This refers to the type of refurbishment loan used for small scale upgrades where there is no change in the intended use of the property. In most cases, this loan type is used in funding basic repairs and renovations. Some of the repairs and renovations include redecorating, the installation of a central heating system, fitting new windows or doors, fitting a new kitchen or bathroom, or a combination of such upgrades, amongst others.
Landlords and property investors seeking to refurbish a single property can borrow up to 75% of the project’s expected end value. Most lenders, however, will consider more complicated projects such as blocks of flats and multi-apartment buildings. Notably, bigger projects come with higher borrowing rates.
Heavy refurbishment finance
Heavy refurbishment financing is suitable for property investors looking to carry out major structural changes that are bound by building regulations. For such a loan, the lending criteria also changes with the rates being highly competitive. Some of the projects that require such financing include properties requiring planning permission, conversions, property extensions, and structural work, among others.
What types of properties can be refurbished?
Here at MJ Capital Finance, we offer property refurbishment loans to our customers for a large number of properties. Common properties refurbished by our previous customers include:
• Residential properties
• Commercial properties
• Unmortgageable properties, including non-standard constructions
• Auction properties
When refurbishing a property, you will need to carefully consider the costs involved, including maintenance and renovation. The best way to do this is to create a budget and have a thorough understanding of how much money you will need from the beginning. Costs you will need to factor into your budget include:
Professional – engineers, architects and solicitors
Construction – materials and labour
Renovation – the removal and replacement of appliances in areas such as the bathroom or kitchen
Are you looking to renovate your first auction property as a buy-to-let landlord? Or do you wish to convert your large commercial building into a block of flats?
MJ Capital Finance is renowned when it comes to offering refurbishment loans in the UK for all property refurbishment types. We offer quick and flexible borrowing options for our customers no matter their experience levels. Notably, the rates we offer for our customers are highly competitive. Investors who turn to our services required expert assistance and advice in securing a realistic and optimal refurbishment loan for their upgrade projects.