| Rate from | 0.85% pm |
|---|---|
| Max LTV (purchase) | 70% |
| Max LTV (GDV) | 65% |
| Term | 12–24 months |
What Counts as Heavy Refurbishment?
Lenders classify the following as heavy refurbishment:
- Removal of load-bearing walls or structural alterations
- Single or double-storey extensions
- Loft conversions (dormer or mansard)
- Basement excavations or underpinning
- Change of use (commercial to residential, house to HMO, etc.)
- Works requiring full planning permission or building regulations sign-off
- Converting uninhabitable property (no bathroom, no kitchen, major structural repairs)
Rates for Heavy Refurbishment Bridging
| Works Type | Rate (per month) | Max LTV | Term |
|---|---|---|---|
| Extension / loft conversion | 0.85–1.05% | 70% purchase / 65% GDV | 12–18 months |
| Basement excavation | 0.95–1.2% | 65% purchase / 60% GDV | 12–24 months |
| Change of use | 0.90–1.1% | 70% purchase / 65% GDV | 12–24 months |
| Uninhabitable / derelict | 0.90–1.3% | 65% purchase / 60% GDV | 12–18 months |
| HMO conversion | 0.85–1.1% | 70% purchase / 65% GDV | 12–18 months |
How Staged Drawdown Works
- 1
Purchase drawdown
Funds to complete the property purchase drawn on day 1 - typically 70% of the purchase price or agreed value.
- 2
Works tranche 1
After the monitoring surveyor confirms initial works are complete to specification, the first works tranche is released - usually 30–40% of the total works budget.
- 3
Works tranche 2
On confirmation of further milestone completion, the second works tranche is released. Timings and number of tranches are agreed at outset.
- 4
Final tranche / retention
The final tranche (sometimes 10% held back as retention) is released on practical completion and final inspection sign-off.
The Monitoring Surveyor
The lender appoints a monitoring surveyor (project monitor) to protect their investment by inspecting and certifying works at each drawdown stage. The surveyor visits the site, compares progress against the agreed schedule of works and cost plan, and issues a certificate confirming the tranche can be released.
Monitoring surveyor costs are typically £500–£2,000 per inspection, borne by the borrower. Experienced developers factor this into their cost plan. We can recommend monitoring surveyors familiar with the major heavy refurbishment lenders, which helps keep the process moving.