Our short term bridging loans are for purchase, refinance, property improvement or to unlock working capital for business purposes.
This unique overdraft provides you with a flexible drawdown facility giving you instant liquidity and avoids heavy setting-up costs.
Individually structured development loans for residential and commercial projects, with finance available for site purchase, construction and fees, refinance, equity release and to provide working capital. Loans are available up to 90% of the site cost.
We have a commitment to innovation and with the ever changing financial landscape around us we have designed a range of unique Specialist Lending products that solve a range of property lending needs.
By Jonathan Rubins, Director & Chief Commercial Officer at Alternative Bridging Corporation
Turning a property into a dream home or ideal investment can be incredibly rewarding. However, navigating the financial aspects of property renovation can be very challenging if not approached correctly. This guide explores various financing options available, specifically focusing on Light Refurbishment and Heavy Refurbishment Bridging Loans.
Property renovations remain a popular trend in the UK. Homeowners are increasingly choosing to improve their existing properties rather than move. This is largely due to a limited supply of new homes and high interest rates on mortgages. For renovating a home or investment property, we offer two loans suitable for this purpose. Both are highly flexible, offer competitive interest rates and typically have short turnaround times.
Our Light Refurbishment Loans are ideal for non-structural improvements that don’t require planning permission. We commonly offer these loans for a variety of changes and installations within an existing structure. For example: replacement or renewal of bathrooms, kitchens, replacement heating, plumbing, electrical rewiring, and roof work. These loans are offered on buy-to-let houses and flats, licensed HMO’s, other residential, retail, industrial and office property renovations. For first charges these loans start at £250,000 to £3.5m with an LTGDV up to 70%.
Our Heavy Refurbishment Loans are designed for larger-scale projects that may require planning permission. These loans are typically used for structural reconfiguration, extensions and converting commercial premises for residential use. Heavy Refurbishment loans can be used on buy-to-let properties, licensed HMO’s, other residential, retail, industrial and office property renovations. The loans are available for between £500,000 to £3.5m with an LTV up to 65%.
Both Light Refurbishment and Heavy Refurbishment Loans are available for individuals and partnerships, UK limited companies, LLPs, and certain offshore borrowing entities.
To begin a renovation project, you will first need to assess your savings, income, and existing debts to determine a realistic budget for the project. It is very important to factor in additional costs at this stage. Also consider unexpected expenses like material price fluctuations, and potential building regulation fees.
Conduct further research to establish what type of refurbishment loan would be required based on the project scale and secure pre-approval if necessary.
Organise documents like payslips, bank statements, and proof of property ownership.
A professional surveyor can uncover structural problems, damp, asbestos, or other hidden concerns that may affect renovation costs. A survey report offers valuable insight into the property’s condition, preventing surprises that may arise during the renovation.
If there is budget in the plan, hiring a designer and an architect can be very beneficial. An architect can advise on aspects such as maximising space and creating layouts that suit your lifestyle or to maximise rental value. They can also help navigate building regulations and obtain planning permission.
Check permissions required on the local council website which will outline the planning permission process and any specific requirements for the project.
Loft conversions, extensions, or alterations to the property’s exterior typically require planning permission.
An architect or planning consultant can assist in navigating the planning application process, increasing the chances of approval.
Seek recommendations from friends, family, or online resources. Make sure online reviews are checked and references before finalising the choice. Quotes should be obtained from multiple reputable builders, outlining the project details and specifications. It’s also vital to compare quotes carefully before selecting a builder who fits the budget and project requirements. Ensure a formal contract is in place that clearly outlines the scope of work, payment schedule, and completion deadlines.
Consider how large materials will be delivered and removed. Similarly, ensure adequate access is available for builders and tradespeople throughout the project. Also factor in the cost and logistics of waste disposal, particularly for large-scale renovations or demolition work.
Create a realistic timeline for the project, outlining key milestones and deadlines for each stage of the renovation.
Share the schedule with the builder and communicate any adjustments or delays promptly to maintain a smooth workflow.
By following these steps and securing the appropriate financing, you can proceed with a clear plan and increase their ROI. Remember, consulting with professionals like surveyors, architects, and experienced property finance brokers add significant value throughout the process, ensuring a stress-free and rewarding renovation experience.
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