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
Tell us the four things every lender asks first. We come back with realistic terms, usually the same working day.