The distinction between refurbishment finance and development finance matters for pricing and structure. Refurbishment facilities typically carry higher interest rates than development finance but lower arrangement fees and shorter completion timelines. For projects where the existing structure is retained and the works are primarily internal, refurbishment finance is usually the appropriate product.
Permitted development conversions — particularly office-to-residential under Class MA — have created significant opportunities for refurbishment finance. These conversions can be completed faster than new-build schemes and at lower cost, but they require careful assessment of the building's suitability, including floor-to-ceiling heights, natural light, and structural capacity for residential loading.
Energy efficiency improvements are increasingly factored into refurbishment finance decisions. Lenders recognise that properties refurbished to high EPC ratings command premium rents and sales values, and some offer preferential terms for projects that demonstrably improve energy performance. This is particularly relevant for older properties where an EPC upgrade is part of the refurbishment scope.
Prime residential values in Central London continue to attract international capital, while the suburban and Home Counties markets benefit from hybrid working patterns driving demand for larger homes with garden space. Developers who understand the micro-market dynamics — from Crossrail catchment areas to new Overground extensions — can achieve premium returns.
Indicative Terms
Typical terms available for refurbishment finance in London. Actual rates depend on your project specifics and experience.
Interest Rate
From 0.65% p.m.
Loan to Value
Up to 75% LTV
Typical Term
6-18 months
Arrangement Fee
1-2% of facility
Rates shown are indicative and subject to individual assessment. Contact us for a bespoke quote.
Representative Deal
Conversion of a large Victorian property into a licensed 8-bed HMO. Works included structural reconfiguration, ensuite bathrooms to all rooms, fire safety compliance works, and a shared commercial kitchen. Funded as a light refurbishment bridge at 75% of purchase price with works costs drawn against stage completions over a 5-month programme.
GDV
£950,000
Loan Amount
£620,000
LTV
75% LTV
Loan Type
Refurbishment Bridge
This is a representative example. Actual terms vary based on project specifics.
Common Questions
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