Our Light refurbishment bridging loans are short-term, interest-only loans designed to provide funding for home improvements which don’t require planning permission from a Local Authority. These could include kitchen and bathroom renovations, redecoration, or changing room layouts.

Light refurb bridging loans being used to fund improvement in order to obtain Energy Performance Certificate (EPC)

In addition, with the government expected to introduce new energy efficiency requirements for landlords and property investors in 2025, many are using light refurbishment bridging loans to fund improvements in order to obtain an Energy Performance Certificate (EPC) rating of C or above.

Bridging loans for light refurbishment are used to cover the financial gap between a property’s purchase and the ‘exit strategy’ after the improvements have taken place, such as the sale of the property or a switch to long-term financing in the form of a buy-to-let term loan.

Unlike traditional mortgages or standard bridging loans, light refurb loans are specifically for properties needing non-structural work. They’re ideal for developers, landlords, and property investors looking to increase the property’s value but don’t have the cash funds to do so.

Key Benefits of light property refurbishment loans

One of the key benefits of light refurbishment bridging loans is the fast processing time for applications, which can be an important factor when aiming to quickly resell a property or working under strict time constraints.

The amount that can be borrowed varies but usually can go up to 70% of the increased value of the property, while loan periods typically range from three to 18 months. At Alternative Bridging Corporation, our light refurbishment funds are available from £250,000 to £3.5m to improve existing buildings prior to lettings or resale.

Borrowers should also budget for additional costs such as arrangement fees, valuation fees, and legal fees.

Working with an expert property finance lender

Light refurbishment loans are available as either a first-charge loan or a second-charge loan. A first charge loan is ideal for borrowers without an existing mortgage, as this loan will serve as the main financing on the property, while a second charge loan is tailored for those who already have an existing finance deal on the property. It’s also worth noting that bridging loans for light refurbishment can be secured, either as a first or second charge, on a different property to the one that is being refurbished. Working with an expert property finance lender, like Alternative Bridging, can help to identify the best solution and way to structure the loan for a borrower’s circumstances and requirements.

While ‘light refurbishment’ means the project is likely to be more straightforward than a ‘ground-up’ new development, borrowers should still plan carefully. A clear and detailed refurbishment plan is crucial, both for getting the loan approved and also ensuring the project’s success. This should include realistic cost and time estimates as delays can significantly impact profitability.

Finally, it’s vital to have a viable exit strategy and at the present time, lenders are more predisposed towards applicants who have a ‘plan B’ in case their preferred exit strategy becomes unviable.

Not all bridging loans are the same and we would always recommend working with an experienced short-term lender such as Alternative Bridging who offers specific products for those wanting to fund light refurbishment works.

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