Refurbishment finance helpsturn weathered property into modern new pad for professionals


Our client purchases property, renovates it and then either sells or holds the property long term. The brief was to fund a 3-bed terrace house in Windmill Hill that was tired and needed updating. The plan was to also add a bedroom to the property and once works were complete to refinance on to a multi-let BTL mortgage.

The challenge with this property was that the property faced a pub. One of the lenders didn’t share our clients vision and no amount of convincing that the clients work was of a high quality would tempt them to lend, they also had worries that the property would not ‘value up’ at the end of the works.


Due to the knock back of the initial lender we approached a lender that the client had worked with several times previously. We secured refurbishment finance at 0.85% per month with a 1.5% fee.

As the works would only take 3 months we required a lender that would lend within 6 months of purchase and that would lend 75% of the increased value. We secured funding on a 2-year fixed rate at 3.19% with minimal set up costs.


The property was purchased quickly using the short-term finance. The funding for the remortgage to buy to let took a little longer than anticipated but using our contacts at the lender we had the case escalated and a mortgage offer soon followed. The remortgage will allow the client to let the property out profitably and raises cash for their next development.

Initial Terms:

Loan £207,000

Property value £270,000

Rate: 0.85% per month

Refurbishment Costs: £52,000 including fees (stamp duty and professional fees)

Expected GDV: £370,000

Buy to let exit terms:

Loan £277,500 (75% loan to value)

Post works confirmed valuation £370,000

Rate: 3.09% fixed for 2 years

Post works rental income: £3,200pm


This was another quality light refurbishment project that needed funding and instantly we knew which lenders would offer our client the best terms. What we didn’t expect was negativity from the initial lender around the fact a community pub was opposite and doubts about the final value. The expected final value of £350,000 was in fact surpassed and we achieved a final valuation from a RICS qualified surveyor of £370,000 thus allowing our client to pull out more finance from the property for their next project.

Not only did our client create a gross profit of £48,000 but they also created a property achieving a 10.3% yield.