Property Refurbishment Loans – Tailored To Your Project
Property refurbishment loans offer a flexible and fast way to fund your renovation projects – whether you’re renovating a single property or upgrading a large portfolio.
Unlike traditional mortgages, refurbishment finance is designed specifically for property that requires work to achieve its full market value.
At KP Finance, we specialise in structuring refurbishment loans that are tailored to your project’s unique requirements, helping you unlock the potential of your property investment with confidence and speed.
With our experience in the UK property finance market, we work with a wide panel of specialist lenders to offer highly competitive terms, fast decision-making, and funding solutions that are built around your timeline.
To make an inquiry, call the number below or use the form provided. The KP Finance team can offer knowledgeable, clear and constructive feedback whilst helping you get an initial decision in principle and funding usually within 3-4 weeks.
Call +44 203 488 1128
Samuel Kalms, Founder of KP Finance
Speak To Our Team
At KP Finance, we draw on over 30 years of combined experience in real estate finance across the UK and overseas.
Our ability to offer sound advice and utilise this experience allows us to facilitate the best refurbishment funding options possible, with rates, terms and structure that suits your needs.
As a specialist broker, we have close connections with different lenders and funders who can take a view on different opportunities – and provide very personalised terms for your designs, build and timeline.
What Types of Property Refurbishment Loans Do You Offer?
Property refurbishment finance can be structured in a number of ways depending on the works involved. Light refurbishment loans typically cover non-structural works that do not require planning permission or building regulations. Heavy refurbishment loans, on the other hand, involve more complex works, may require planning, and often need detailed cost schedules and professional reports before funds can be approved.
Type of Finance | Common Uses | Typical LTV or GDV | Loan Duration |
Short-term finance to purchase property quickly, fund minor refurbishments or meet tight deadlines | Up to 75% LTV | 3 to 24 months | |
For ground-up developments or heavy refurbishments involving major structural work | Up to 65-70% GDV (85% LTC) | 12 to 36 months | |
Adding new floors or rooftop extensions under permitted development or full planning | Up to 70-75% GDV | 12 to 24 months | |
Light Refurbishment Loans | Cosmetic works such as redecorating, new kitchens, bathrooms, flooring, or redecoration | Up to 75% LTV | 6 to 12 months |
Heavy Refurbishment Loans | Structural changes such as reconfiguring layouts, extensions, loft conversions or basement digs | Up to 70% GDV | 6 to 18 months |
What Are Refurbishment Loans Used For?
- Loft conversions
- Rear and side extensions
- Basement conversions
- New kitchens and bathrooms
- Window and door replacements
- Upgrading heating systems
- Rewiring and electrical updates
- Full cosmetic refurbishments
- Internal reconfiguration and layout changes
- Roofing repairs or replacements
- Eco-friendly upgrades e.g heat pumps, solar panels
What Can Refurbishment Loans Pay For?
- Architects and planning consultants
- Surveyors and structural engineers
- Interior designers
- Landscape gardeners
- Builders and general contractors
- Plumbers and electricians
- Quantity surveyors and project managers
What Properties Can Refurbishment Finance Be Used On?
- Residential
- Commercial (all asset classes)
- Mixed-use
- Land purchases
- HMOs
- Hotels
- Warehouses
- Garages
- Student accommodation
- Leisure centres and gyms
- Offices
- Blocks of flats
- Distressed properties
- Properties under probate
Useful Guides
How is Development Finance Different To Bridging Finance?
What is the Maximum LTV For a Bridging Loan?
What Property Renovations Maximise The Value of a Property?
What Are The Benefits of Refurbishment Loans?
Speed of funds – Traditional lenders like high street banks can take months to assess and process applications. In contrast, refurbishment finance can often be arranged within 2 to 4 weeks, allowing you to secure opportunities quickly and start building work without lengthy delays.
Flexibility– Refurbishment finance can be structured to match the cash flow needs of your project, with staged drawdowns, interest roll-up options, and tailored repayment schedules. This allows you to focus your budget on the renovation works, while the finance supports your short-term funding needs.
Grow your portfolio -. If your equity is tied up in other projects, refurbishment finance can help release capital for new acquisitions or fund upgrades that add value. This enables you to maximise returns, increase rental income or achieve higher sales prices upon completion of works.
What is The Criteria For Refurbishment Finance With KP Finance?
- UK resident or company
- Property used as security
- Property is in UK, Scotland or Wales
- Clear exit strategy
- Financial records and statements
- Proof of funds/deposit
- Good credit history preferred but not essential
A strong exit plan is essential. This could involve selling the property on the open market once works are complete, refinancing onto a longer-term buy-to-let or commercial mortgage, or repaying the loan through the sale of other assets.
Lenders will want a clear and achievable plan to repay the loan at the end of its term. Without a viable exit, your application may be declined, or you may face higher costs.
Lenders also expect you to have a good handle on your costs. Underestimating costs can lead to cash flow issues, which may put you at risk of missing repayments and facing late fees or even repossession.
Is a Refurbishment Loan Right For Me?
A property refurbishment loan may be the right solution for you if you have a clear exit plan and a full understanding of your costs. Successful refurbishment projects require careful cash flow management, as missing repayment deadlines can result in costly penalties or even the loss of the property if the lender is forced to repossess. If you have experience managing renovation works, access to strong professional advice, and realistic expectations around costs and timelines, refurbishment finance can be a highly effective tool to grow your portfolio and increase the value of your property assets.
Case Studies
Frequently Asked Questions
Are You a Lender or a Broker?
KP Finance is a broker. Our expertise and experience in the real estate and property finance industry allows us to place your loan requirements with the best and more suitable lender. This is not about getting the cheapest rates possible, but connecting you to a lender that understands your personal needs and requirements and can offer flexible terms.
Our track records demonstrates our ability to maximise approvals for our customers, helping them access fast funding to bring their projects to life. Please contact us at enquiries@kp-finance.com or call 0203 488 1128 to speak to a team member today.
What Are The Additional Fees Involved With Refurbishment Loans?
- Arrangement fees (typically 2%)
- Valuation fees
- Legal fees
- Exit fees (if applicable)
Which Parts of The UK Can You Lend To?
We proudly offer bridging finance in Aberdeen, Birmingham, Brighton, Bristol, Cardiff, Cornwall, Durham, Edinburgh, Glasgow, London, Liverpool, Leeds, Leicester, Manchester, Nottingham, Newcastle, Sheffield, Southampton and many more.
How Much Can I Borrow For a Property Refurbishment?
At KP Finance, we specialise in arranging refurbishment loans from £500,000 upwards. The amount you can borrow will depend on the property value, the scale of building work, your available deposit or equity, and the strength of your exit strategy.
Is My Property Always Used As Security?
Yes, the property being refurbished is usually used as security for the loan. In some cases, lenders may also take additional security or personal guarantees. If you were to use an unsecured personal loan, property security may not be required, but these products are not typically suitable for larger refurbishment projects.
How Soon Can I Receive a Decision in Principle?
KP Finance can typically provide an initial decision within 24 to 48 hours. We will require information about the property, its value and your plans for it. We may also request proof of funds for a deposit and recent financial records.
How Fast Can My Loan Be Funded?
Auction finance loans can be funded as quickly as 5 days (should circumstances allow) but the full process from start to finish can typically be 3 to 4 weeks
Are Refurbishment Loans Regulated or Unregulated?
In the UK, refurbishment loans are usually unregulated, but it depends on the type of property and who is borrowing.
If the refurbishment loan is secured against an investment property, buy-to-let, commercial property, or development project, it is typically classed as unregulated finance. Most property refurbishment finance arranged for developers, landlords, or companies fall into this category.
If the loan is secured against a borrower’s own home (main residence) and not for business or investment purposes, then it may fall under regulated activity.
Are Repayments Made Monthly or Rolled Up?
The interest and repayments for bridging finance are usually rolled up and paid on exit of the loan term. Other options exist such as monthly (serviced) or interest deducted upfront (retained).
Is My Property At Risk of Repossession?
If your loan has been in arrears for a long time and there is no immediate sign of repayment, the lender may repossess the property in order to recover their losses.
However, before entering this stage, the lender may extend the terms of your loan, giving you longer to repay, but this will incur additional interest each month and possibly a late charge until the loan is paid off.
You may have the opportunity to refinance your loan under new terms, which may be less favourable.
At this point, KP Finance will be available to assist you and help you to arrange the best possible outcome.
