What counts as light refurbishment
Light refurbishment generally means works that do not need planning permission or building regulations approval for structural changes. Typical examples are new kitchens and bathrooms, rewiring, replumbing, a new heating system, plastering, flooring and decoration.
Each lender sets its own limits. On our panel, light works are commonly capped at somewhere between a quarter and a half of the property's current value, and some lenders also set a pound limit. Once works involve structural changes, extensions, change of use or planning permission, most lenders treat the project as heavy refurbishment, which has its own products and criteria.
Some lenders allow a single-storey extension, a loft conversion or an HMO conversion within their light category, while others do not. Describing the works accurately at the outset matters, because the wrong category leads to the wrong product.
Paying for the works
There are two main structures. With a self-funded light refurbishment, the lender advances money against the purchase or the current value and you pay for the works from your own funds. With a works-funded facility, the lender also releases money for the works, usually in arrears after a surveyor confirms each stage is complete.
A works-funded loan reduces the cash you need, but adds monitoring costs and means you need funds to start each stage before it is reimbursed. Some lenders lend a higher day-one percentage for light works, while others cap the total loan against the value after the works. We compare both structures so you can see which leaves you with enough working capital.
Exit routes
The usual exits are a sale of the improved property or a refinance onto a buy-to-let mortgage at the higher value. If you plan to refinance, check the buy-to-let lender's rules early. Many have a minimum period of ownership before they will lend on a new valuation, and they will apply their own rental cover tests.
A few bridging lenders offer their own buy-to-let refinance route, which can simplify the exit. Allow realistic time in the term for the works, the valuation and the refinance or sale to complete.
Making a strong case
Lenders look for a clear plan and a sensible margin. A good application includes a schedule of works with costs, contractor quotes or details of who will do the work, photos of the property's current condition, and evidence for the value after the works from agents or comparable sales.
First-time refurbishers can usually access light refurbishment, though some lenders reduce the maximum loan or works budget for those without previous projects. We compare lenders on works limits, funding structure and experience requirements, then approach those that fit. Instant Quotes gives indicative figures as a starting point, and final terms depend on each lender's valuation and checks.
If you or your family will live in the property
If the borrower is an individual or the trustees of a trust, and the property is, or will be, lived in by you or a close family member, the loan is a regulated mortgage contract with additional protections. We will tell you at the outset if that applies and how your case will be handled.
Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
