Why Use a Refurbishment Loan?

A Refurbishment Loan is a great tool for property developers looking to upgrade their property but don’t have the surplus funds to do so.


Do you want to renovate your property but don’t have the capital to continue? If so, a Refurbishment Loan could be ideal for you.


One of the most obvious advantages of a short-term loan is the speed at which it can be completed. F&M Finance regularly help investors buy properties and make the necessary refurbishmentsby helping them gain access to the funds they need as quickly as possible.


From 1-24-monthterms to not requiring any personal guarantees, at F&M Finance we understand that the difference between success and failure is the ability to finance and refurbish a project as quickly as possible.


What Makes a Refurbishment Loan So Appealing?

Key features of a Refurbishment Loan include;

  • • Up to 75% (or even 80%) Loan to Value towards the purchase, then 100% of costs in arrears, subject to 70% of the finished value of the property.
  • • 100% funding available, with additional security
  • • Interest rates from 0.4% per month
  • • Loan Terms from 1 month to 24 months
  • • Loans from £50,000 to £100m
  • • Options with no Exit Fees
  • • Rolled up, retained or deducted interest options available
  • • Staged payment facilities available


What Can a Refurbishment Loan Be Used For?

Typical uses for Refurbishment Loans include a below market value purchase. Due to the properties poor condition, a loan may help raise funds to finish the property when the borrower has run out of money.


What Types of Refurbishment Loan Are There?

There are two types of Refurbishment Loan which incorporate the extent of work required. Generally, “Heavy Refurbishment” involves a change of use of the building – this usually requires planning permission or approval by the relevant building regulations. On the other hand, “Light Refurbishment” is where the property in question requires only small improvements; these are predominantly cosmetic works to an existing structure. This may range from simple aesthetic changes to more substantial changes such as a new bathroom or kitchen.


Be it a modernisation, reconfiguration, rebuilding or converting, if a property is in need of work, F&M Finance can help.