Property Refurbishment Loans for Light Works (85% Funding)

Updated at September 3rd, 2025

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Table of Contents

What is a Light Refurbishment Loan? Is it difficult to obtain a Light Refurbishment Loan? Could I use a Buy-to-Let Mortgage instead of a Property Refurbishment Loan? Key Features: Property Refurbishment Loans for Light Works The Role of Planning in Light Refurbishment Projects Steps to Securing a Property Refurbishment Loan Benefits of Property Refurbishment Loans for Light Works Why Choose Advocate Finance for Property Refurbishment Loans?

Welcome to Advocate Finance, your trusted mortgage broker for securing Property Refurbishment Loans for Light Works.

Whether you’re looking to enhance the value of your property or prepare it for rental, our tailored finance solutions can help.

From straightforward redecorations to minor structural improvements, we work with you to provide fast, reliable funding options to ensure your refurbishment project is completed efficiently.

What is a Light Refurbishment Loan?

For a property to be granted a mortgage, it must be habitable. It must have a fully functioning bathroom and kitchen and also has to be wind & watertight. For the property to be let to a tenant, lenders will require it to be in a “lettable condition” which normally is a higher standard than just “habitable”.

If a property needs re-plastering, redecorating, rewiring or a newly fitted kitchen or bathroom, this can be arranged through a light refurbishment loan – This type of project cannot involve any changes of use or require planning permission.

However, some refurbishment projects are more involved. If the works require planning permission changes, for example, converting offices into flats or any structural works, this would be considered a heavy refurbishment project and would require a heavy refurbishment loan

Is it difficult to obtain a Light Refurbishment Loan?

The simple answer is No – subject to project viability and experience; we have arranged finance for light property renovations for all types of clients.

The key question a lender asks is, is the project viable? What this means is when you factor into account the purchase price, the acquisition costs (stamp duty and legal fees), the cost of works to refurbish the property & the financing costs; does it make a profit?

If it does, then lenders are very happy to provide property refurbishment finance.

Example:

The costs equal to £245,000 however, the end value of the property post works is £280,000. Therefore, the profit is £35,000 and the project is viable and suitable for a property refurbishment loan.

Purchase price	£200,000
Stamp duty / legal costs	£6,000
Cost of works	£30,000
Financing costs	£9,000

Could I use a Buy-to-Let Mortgage instead of a Property Refurbishment Loan?

Some of our clients ask us this question. The answer depends on several factors.

Firstly, what is the condition of the property being purchased or refinanced?

If it is not in a lettable condition, then a lender that offers a buy-to-let mortgage will not deem the property to be a suitable security and they will not proceed with the application; meaning there’s time and money wasted on a valuation fee, which could have cost several hundreds of pounds.

Sometimes a property is in a lettable condition but is not modernised and therefore not maximising its rental income potential.

For instance, you could secure a buy-to-let mortgage on the property but the rental income, as assessed by the valuer, comes back lower, meaning you need to put down a larger deposit than with a light refurbishment loan.

Key Features: Property Refurbishment Loans for Light Works

Loan Amounts: Finance from £50,000 to £1 million, depending on the project scope.
Loan-to-Value (LTV) Ratios: Up to 75% of the property’s post-refurbishment value.
Flexible Loan Terms: Terms range from 3 months to 3 years, ideal for short-term refurbishment projects.
Fast Approvals: Funds can be arranged quickly, often within a few weeks.
Interest-Only Payments: Available during the refurbishment phase to manage costs.
Wide Property Eligibility: Suitable for residential homes, HMOs, and buy-to-let properties.
Post-Refurbishment Options: Transition to a long-term mortgage after completion.
All Credit Histories Considered: Options available for investors with diverse financial backgrounds.

The Role of Planning in Light Refurbishment Projects

While light refurbishment projects generally do not require extensive planning permissions, understanding local regulations is still essential. For instance, listed properties or those in conservation areas may require approval for even minor changes. Ensuring compliance with these rules can prevent delays and ensure smooth project completion.

Advocate Finance provides guidance on funding projects that adhere to local planning requirements, helping you stay on track.

Steps to Securing a Property Refurbishment Loan

Step 1

Initial Consultation

Start with a consultation to discuss your refurbishment goals, the property details, and your financial requirements. Our expert advisers will evaluate your project and recommend the most suitable loan products for your needs.

Step 2

Loan Application Submission

Once a suitable property is identified, we assist with submitting the loan application. This includes providing the necessary documentation, such as property details, refurbishment plans, and expected costs. Our team ensures the application is thorough to speed up approval.

Step 3

Loan Approval and Initial Funding

After the application is reviewed, lenders typically approve loans based on the property's current value and the planned refurbishment work. Funds are then released quickly to allow you to start the project without delays.

Step 4

Refurbishment Phase

With funding in place, you can carry out the planned refurbishment works, such as redecorating, updating fixtures, or improving the property's layout. Interest-only payments during this phase help keep costs manageable.

Step 5

Post-Refurbishment Valuation

Once the refurbishment is complete, a new valuation of the property is conducted. This updated valuation reflects the increased market value of the property after the improvements.

Step 6

Transition to Long-Term Financing

Following the refurbishment, we can help you transition to a long-term mortgage, such as a buy-to-let or residential mortgage. This allows you to secure better terms based on the property's enhanced value and release equity for future investments.

Benefits of Property Refurbishment Loans for Light Works

Advantages

Disadvantages

Fast Access to Funds:

Loans are processed quickly, allowing you to begin the refurbishment without delays.

Short-Term Costs:

While interest-only payments are manageable, loans are typically short-term and require refinancing or repayment once the refurbishment is complete.

Flexible Terms:

Short-term loan options with interest-only payments during the refurbishment phase help manage costs.

Market Dependency:

The success of the project depends on the property’s post-refurbishment valuation and market conditions.

Increased Property Value:

Refurbishment increases the market value of your property, enabling higher rental income or a better sale price.

Eligibility Criteria:

While flexible, some lenders may require a solid financial history or experience in property refurbishment.

Post-Refurbishment Options:

Transitioning to a long-term mortgage allows you to release equity and reinvest in new projects.

Upfront Planning Required:

Proper planning, including detailed cost estimates and timelines, it’s crucial to avoid delays and unexpected expenses.

Wide Eligibility:

Suitable for a range of properties, from single residential homes to HMOs.

Why Choose Advocate Finance for Property Refurbishment Loans?

Expertise and Experience

Advocate Finance specialises in property refurbishment loans, with years of experience assisting investors in funding their light refurbishment projects.
Our team understands the unique challenges these projects present and provides expert guidance tailored to your specific needs.

How Can YOU Benefit from Our Advice?

Our advisers present tailored options, ensuring you understand the full cost and potential returns of your refurbishment project.
We guide you through both short-term loans and long-term refinancing options, making the process seamless.
If speed is essential, we prioritise your case to meet tight deadlines.

Competitive Fee Structure

FREE assessment with one of our expert advisers.
No upfront fees: Fees are payable only upon loan approval.
Clear & transparent fee structure agreed upfront and in writing
Want to see what our clients say? Read our testimonials & Google reviews.

Comprehensive Range of Services

From bridging loans to long-term buy-to-let mortgages, we cover every aspect of property finance.
Our efficient, reliable service ensures you receive the funding you need with minimal delays.

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