Heavy Refurbishment Bridging Loan
A heavy refurbishment bridging loan funds works that are structural, involve a change of use, or need planning or building regulations consent — the point at which a light refurbishment product no longer applies. Lenders advance up to 75% of the day-one value plus 100% of the build cost in arrears drawdowns, capped at around 70% of gross development value, priced from about 0.85% per month over 9 to 24 months. Because the work is closer to development than decoration, lenders underwrite the contractor, the budget and your track record as carefully as the asset itself, and appoint a monitoring surveyor to sign off each drawdown.
Criteria and pricing
What lenders on our panel will typically do on this product today.
- Day-one advance
- Up to 75% of purchase price or current value
- Works funding
- 100% of build cost, released in arrears stages
- Maximum loan to GDV
- ≈ 70%
- Rate
- 0.85% – 1.20% pcm
- Term
- 9 – 24 months
- Arrangement fee
- 1.5% – 2%, plus monitoring surveyor costs
- Works threshold
- Structural change, extensions, change of use, or spend above ~25% of value
- Experience
- At least one comparable completed project
- Exit
- Sale, or refinance onto BTL or commercial term debt
Worked example — office to six flats
- Purchase price
- £640,000
- Day-one advance at 70%
- £448,000
- Works budget (100% funded in stages)
- £410,000
- Rate at 0.95% pcm, rolled over 15 months
- ≈ £108,000 interest
- Arrangement fee at 2%
- £17,160
- Gross development value
- £1,420,000
- Redemption
- ≈ £983,000
- Loan to GDV at redemption
- ≈ 69%
Figures are typical UK market ranges as at 2026 and are indicative only — your terms depend on the asset, the exit and the lender we place the case with.
Who this works for — and who it does not
You are likely to qualify if
- Planning consent and building regulations approval where the works require them
- A costed schedule of works with contractor quotes a monitoring surveyor can validate
- Evidence of at least one completed project of comparable complexity
- Working capital to fund each stage before the arrears drawdown reimburses it
- A defined exit supported by comparable end values
This is the wrong product if
- Cosmetic works — light refurbishment bridging is cheaper and faster
- Schemes where consent has not been applied for
- Borrowers with no cash flow to fund works ahead of each drawdown
- Ground up construction, which needs a development facility
What actually happens, and when
- Day 0–2
Budget and schedule review
We pressure-test the works budget and programme first — an underfunded contingency is the single most common reason these cases fail mid-build.
- Day 2–5
Terms
Heads of terms with day-one advance, works tranche, drawdown mechanics and monitoring arrangements.
- Week 2–4
Valuation and QS report
Valuation on both current and post-works value, plus an initial monitoring surveyor report.
- Week 4–6
Completion and first drawdown
Day-one advance released; works drawdowns follow monthly against inspection.
Frequently asked
Request indicative terms
Four details are all a lender needs to price a case: how much, what secures it, when you need it and how it is repaid. Send those and we come back with realistic terms — or tell you plainly that the case will not place.
Request indicative terms
Share your funding amount, security, timing and repayment plan. A specialist will review the case and discuss suitable funding options, subject to lender assessment.