Bridging the Gap: Light vs. Heavy Refurbishment Loans

Bridging the gap between a property’s potential and its final transformation often requires quick and reliable funding. Bridging loans play a pivotal role in helping investors and developers bring their refurbishment projects to life. However, understanding the difference between light and heavy refurbishment loans is key to ensuring the funding matches the scope of the project.  At Alternative Bridging Corporation, we specialise in offering flexible and tailored solutions for both light and heavy refurbishment projects.

Light Refurbishment loans are designed for projects that involve minor improvements and do not require planning permission or significant structural changes. These works typically enhance the property’s appearance and functionality, such as redecorating, upgrading kitchens or bathrooms, and other cosmetic enhancements.

Our Light refurbishment loans are structured to provide funding in three key stages: the initial advance for property purchase, a mid-stage release for refurbishment costs, and the final release upon completion of the project. This staged approach ensures borrowers have the funds they need at the right time, supporting smooth project progression.

Heavy Refurbishment loans cater to more complex projects that involve structural reconfiguration, extensions, or conversions, often requiring planning permission. These loans are ideal for projects such as converting commercial premises into residential use, adding extensions, or altering internal layouts.

At Alternative Bridging Corporation, we review each project individually, including contractor proposals, plans, and necessary planning permissions. Our heavy refurbishment loans are designed to fund up to £1M, covering the total project cost, including interest. Funds are released at critical milestones, ensuring ongoing support and allowing for precise progress tracking.

A recent case in Barnet illustrates the flexibility and speed of our light refurbishment solutions. A property owner, intending to convert a clinic into a three-bedroom family home, faced a last-minute withdrawal from their lender, leaving them in a challenging situation. The project required urgent funding to secure the property and begin the planned refurbishment.

Our team at Alternative Bridging Corporation stepped in immediately, reusing the valuation from the previous lender and instructing legal procedures on the first day of engagement. Within just five working days, we approved and completed the loan, allowing the borrower to proceed with their project. By structuring the loan with a clear exit strategy to align with the borrower’s intent to sell the property post-refurbishment, we ensured the project stayed on schedule. The borrower expressed their satisfaction with our ability to step in at a critical moment and deliver an efficient and reliable solution.

This case highlights our ability to adapt to demanding circumstances, providing fast, tailored solutions for brokers and their clients. Whether the need is for light or heavy refurbishment finance, our asset managers remain closely involved, ensuring funds are released promptly, small challenges are addressed early, and opportunities are maximised. By staying actively engaged throughout the process, we ensure each project has the support it needs to succeed.

If you have any questions about our Light and Heavy Refurbishment loans and how we can help your client, don’t hesitate to get in touch with one of our BDMs today.