Commercial-to-residential conversions under permitted development rights remain one of the most popular refurbishment finance use cases. These projects avoid the full planning application process, reducing both risk and timeline. However, lenders still want to see evidence of prior approval and confirmation that the building meets the necessary criteria for permitted development.
HMO conversions require specialist lenders who understand the licensing regime. Article 4 directions — which require planning permission for HMO conversion in many urban areas — add complexity but also create barriers to entry that protect your investment. Lenders who know the HMO market can offer competitive terms for experienced operators with compliant properties.
Build cost verification is a key part of refurbishment finance. Unlike development finance where a formal quantity surveyor report is standard, refurbishment lenders may accept contractor quotes or a schedule of works from a project manager. However, having a QS-verified cost plan typically unlocks better terms and higher leverage.
Transport improvements — including HS2 Phase 2 planning and the Trans-Pennine route upgrade — are supporting land value growth in towns along key corridors. Lenders with regional expertise recognise the strong fundamentals and are actively seeking to deploy capital across the North West.
Indicative Terms
Typical terms available for refurbishment finance in St Helens. 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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