Refurbishment Finance in Barrow-in-Furness
Find Out MoreJPM Residential helps property investors, landlords and developers arrange refurbishment finance in Barrow-in-Furness.
Refurbishment finance can provide funding to purchase, renovate or improve a property before it is sold, rented or refinanced onto longer-term finance.
Whether you are carrying out a light refurbishment, renovating a buy to let property or completing more substantial improvement works, we can help you find finance suited to the property and project.
What is Refurbishment Finance?
Refurbishment finance is property finance used to fund the purchase and improvement of a property.
It is commonly used by investors and landlords purchasing properties in Barrow-in-Furness that require renovation before they can be rented, refinanced or sold.
Depending on the scale of the works, refurbishment finance may be arranged through a bridging loan or another specialist property finance product.
JPM Residential can assess the property, proposed works, costs and exit strategy to help identify suitable refurbishment finance options.
What Types of Refurbishment Finance are Available?
Different refurbishment finance options are available in Barrow-in-Furness depending on the property and scale of the proposed works.
Options can include:
Light Refurbishment Finance: Suitable for relatively straightforward improvements that do not significantly alter the structure of the property.
Heavy Refurbishment Finance: Used for more substantial renovation projects involving structural works or significant alterations.
Refurbishment Bridging Loans: Short-term finance used to purchase and renovate a property before it is sold or refinanced.
Buy to Let Refurbishment Finance: Finance for landlords improving a property before letting it and potentially refinancing onto a buy to let mortgage.
Auction Refurbishment Finance: Short-term funding for properties purchased at auction that require improvement following completion.
The right type of finance will depend on the property, refurbishment costs, proposed works and your plans once the project is complete.
What can Refurbishment Finance be Used For?
Refurbishment finance in Barrow-in-Furness can be used for a wide range of property improvement projects.
This can include:
Kitchen and bathroom renovations
Electrical and plumbing upgrades
New heating systems
Windows and doors
Roofing works
Internal reconfiguration
Extensions
Loft and basement conversions
Structural alterations
Energy efficiency improvements
General property modernisation
The scale and nature of the works can determine which lenders and finance products are suitable.
Who can get Refurbishment Finance?
Refurbishment finance is available to a range of property investors, landlords and developers, subject to lender criteria.
We can help clients including:
Property investors
Landlords
Property developers
SPVs
Investors purchasing property at auction
Investors purchasing properties requiring renovation
Lenders may consider the property value, refurbishment costs, borrower experience, available deposit or equity and proposed exit strategy.
Contact JPM Residential to discuss your project and the refurbishment finance options that may be available.
How Much can I Borrow with Refurbishment Finance?
The amount you can borrow with refurbishment finance in Barrow-in-Furness depends on the property value, purchase price, refurbishment costs, available deposit or equity and lender criteria.
For refurbishment bridging finance, lenders may calculate the maximum loan using the property's current value and loan-to-value ratio.
For larger projects, lenders may also consider the expected value of the property once the refurbishment works have been completed.
JPM Residential can review the property, proposed works and project costs to help establish how much you may be able to borrow.
How Much Deposit do I Need for Refurbishment Finance?
A deposit of around 25% to 30% of the property value may be required for refurbishment bridging finance, although requirements vary between lenders and projects.
This means short-term refurbishment finance may be available at approximately 70% to 75% loan-to-value (LTV) in suitable circumstances.
The deposit or equity required will depend on the property, purchase price, refurbishment costs, scale of the works and proposed exit strategy.
Larger or more complex refurbishment projects in Barrow-in-Furness may be assessed differently by specialist lenders.
How Much does Refurbishment Finance Cost?
The cost of refurbishment finance depends on the type of funding used, loan amount, loan-to-value ratio, property and scale of the refurbishment.
Where refurbishment finance is provided through a bridging loan, interest rates can typically be around 0.5% to 1.5% per month, although rates vary between lenders and applications.
Additional costs can include:
Lender arrangement fees
Property valuation fees
Legal fees
Monitoring or surveyor fees for larger projects
Broker fees where applicable
Exit fees where charged by the lender
Arrangement fees can commonly be around 1% to 2% of the loan amount, depending on the lender and finance product.
Contact JPM Residential to compare refurbishment finance rates and costs based on your project.
How does Refurbishment Finance Work?
Refurbishment finance provides funding to purchase or improve a property before it is sold, rented or refinanced.
The process normally involves the following stages:
Initial Assessment: We discuss the property, purchase price, proposed refurbishment, costs and exit strategy.
Finance Search: Suitable lenders and refurbishment finance products are identified.
Application: The application is submitted with information about the property, borrower and proposed works.
Valuation: The lender may arrange a valuation of the property and assess the proposed refurbishment.
Loan Offer: If the application meets the lender's criteria, a formal finance offer is issued.
Funds Released: Depending on the finance product, funds may be released at completion or in stages.
Refurbishment: The renovation works are carried out according to the proposed project.
Repayment: The finance is repaid using the agreed exit strategy, such as selling the property or refinancing.
JPM Residential can help you compare refurbishment finance options and manage the application through to completion.
How Long does it Take to get Refurbishment Finance?
Refurbishment finance in Barrow-in-Furness can typically take around 2 to 4 weeks to arrange, although straightforward bridging applications may complete sooner.
The timescale depends on the lender, property valuation, legal work, scale of the proposed refurbishment and how quickly the required information is provided.
Larger or more complex refurbishment projects may take longer because lenders can require additional information about the works, costs and expected property value.
JPM Residential can help manage the application and liaise with lenders to keep your finance progressing towards completion.
Frequently Asked Questions
Can I use Refurbishment Finance to Buy a Property that Needs Renovation?
Yes. Refurbishment finance can be used to purchase properties requiring improvement before they are suitable for letting, refinancing or resale.
The lender will normally consider the property, proposed works, costs and your intended exit strategy.
Can I use Refurbishment Finance for a Buy to Let Property?
Yes. Landlords can use refurbishment finance to purchase or improve a rental property before letting it to tenants.
Once the refurbishment has been completed, you may be able to refinance onto a longer-term buy to let mortgage.
Can I get Refurbishment Finance for an Unmortgageable Property?
Yes. Short-term refurbishment finance can potentially be used to purchase a property that does not currently meet conventional mortgage lending criteria.
You may then carry out the necessary works before selling the property or refinancing onto longer-term finance.
Can I get Refurbishment Finance for an Auction Property?
Yes. Refurbishment bridging finance can be used to purchase properties at auction that require renovation.
As auction purchases normally have short completion deadlines, it is advisable to investigate your finance options before bidding.
Can a Limited Company get Refurbishment Finance?
Yes. Limited companies and SPVs can apply for refurbishment finance, subject to lender criteria.
The lender may consider the company, directors, property, proposed works, available deposit or equity and exit strategy.
Can I Refinance After Refurbishing the Property?
Yes. Refinancing is a common exit strategy for refurbishment finance.
For example, a landlord may use short-term finance to purchase and renovate a property before refinancing onto a buy to let mortgage once the works are complete and the property meets the lender's criteria.
Get In Touch
JPM Residential can help you find refurbishment finance for property renovation and improvement projects in Barrow-in-Furness.
Whether you are purchasing a property that needs work, renovating a buy to let or preparing a property for refinancing or resale, contact us to discuss the finance options available.
We cover Barrow-in-Furness (Cumbria)