Finance for Property Refurbishment Projects
Property refurbishment finance supports landlords, property investors and developers with short-term finance to refurbish existing properties
Property refurbishment finance is frequently used for smaller projects to ‘bridge’ the gap in flexibly funding the purchase of a property to either its sale or refinancing to a mortgage.
Property development finance can be used for both light refurbishments and heavy refurbishments.
This includes installing kitchens, bathrooms and other non-structural property changes to major works that may require planning permission.
Property marketing finance can also be used to fund the marketing period once a development completes.
Property refurbishment finance funding structures
- Standard development facilities as a first charge
- Joint Venture (JV) lending
- Mezzanine or ‘top-up’ debt as a second charge (where first charge lenders allow)
Summary of current key underwriting criteria
- Applications should be supported by good evidence for local demand
- If properties are to be retained on completion, long term refinance options are available
- Developments ought to show sufficient margin to absorb any possible fluctuations in the anticipated GDV of the project
- The borrower or proposed main contractor should have a good CV and able to demonstrate relevant experience
Business Support – Property Refurbishment Finance
Capital Allowances Tax Relief may offset the hidden expenditure in your development property. Typically, this includes elements such as air conditioning, wiring, heating, lighting and security systems – essentially everything that would remain in the building if you tipped it upside down!
All UK taxpayers that own development property, personally or within an Ltd Company, may be eligible to claim Capital Allowances tax relief. The eligibility and value of the claim depends on multiple criteria and assessing this can be complicated, however, we can take this stress off your hands.
For more information on Capital Allowances Tax Relief, visit Tax Reclaims, a Wattsford Family Brand.