Heavy Refurbishment Bridging Loans
We arrange fast, flexible heavy refurbishment bridging loans for structural projects, extensions, loft conversions, HMO and permitted development conversions, and full structural re-configurations. With a panel of 300+ lenders, we secure terms that individual borrowers rarely see approaching lenders directly, funding both the purchase and up to 100% of the build costs in a single facility.
A heavy refurbishment bridging loan is the fastest, most flexible way to fund the acquisition and transformation of dilapidated, under-performing or un-mortgageable property where structural works or planning permission are involved. Interest is rolled up, so there are no monthly payments, your capital stays in the project, not in debt servicing.
Key loan parameters
Understanding your loan
Indicative Rate
From 0.65% per month, depending on project profile and lender.
Max LTV (Day One)
Up to 73% NET of purchase price.
Build Cost Funding
Up to 100% of works funded.
Max LTGDV
Up to 70% — up to 75% with selected lenders.
Loan Size
From £100k to £50m+ depending on lender appetite.
Term
1 to 24 months.
Early Repayment
No early repayment charges.
Monthly Payments
None — interest rolled up.
What is a heavy refurbishment bridging loan?
A heavy refurbishment bridging loan is short-term property finance used where the works involve structural alteration, or where planning permission or building regulations approval is required. Typical heavy refurbishment projects include:
- Single and double-storey extensions
- Loft conversions and basement dig-outs
- Structural re-configuration and internal load-bearing works
- Converting a house into flats, or flats back into a house
- HMO conversions requiring structural works or licensing
- Office-to-residential and other permitted development conversions
- Change of use, for example commercial to residential
- New build elements such as annexes and outbuildings
- Developing an uninhabitable property back to a habitable, mortgageable standard
If your project is purely cosmetic; kitchens, bathrooms, redecoration, rewiring, with no structural works or planning involved, a light refurbishment bridging loan will typically be cheaper and faster. Not sure which side of the line your project falls? Call us and we will classify it correctly in minutes – applying to the wrong lender tier wastes weeks.
How does a heavy refurbishment bridging loan work?
The loan usually consists of two disbursements:
- Day one advance: Based on the current value of the property, typically up to 73% NET of the purchase price, letting you complete quickly – including within standard 28-day auction deadlines.
- Refurbishment tranches: Up to 100% of the build costs, released in stages as works progress, usually in arrears against certification from the lender’s monitoring surveyor.
Interest is only charged on funds once drawn, and is typically rolled into the loan so there are no monthly payments during the term. The overall facility is capped at around 70% of the gross development value (LTGDV) once the works tranches and rolled-up interest are included.
Because heavy refurbishment involves structural risk, lenders underwrite the works as closely as the property itself, your schedule of works, build costs, contractor and contingency will all be assessed, and a monitoring surveyor will typically sign off each drawdown. This is where a specialist broker earns their keep: we present your scheme to underwriters in the strongest possible light, pre-empt the questions that stall drawdowns, and keep the facility moving so your contractor is never waiting on funds.
Once works are complete, the property is revalued at its improved value and the loan is repaid, through sale, or by refinancing onto a buy-to-let or term investment mortgage at the uplifted valuation.
Heavy refurbishment bridging loan rates
Heavy refurbishment bridging loan rates start from around 0.7% per month, though pricing typically sits above equivalent light refurbishment deals to reflect the structural risk and additional monitoring involved. The rate you are offered will be determined by:
- Loan to value (day one) and loan to GDV
- The scale and complexity of the works relative to the property’s value
- Planning status, full consent granted, permitted development, or pending
- Your experience and track record with similar projects
- Your credit profile
- The strength of your exit strategy
Beyond the headline rate, budget for arrangement fees, valuation fees, monitoring surveyor fees for each drawdown, legal costs and, with some lenders, exit fees. Comparing heavy refurbishment loans on rate alone is a mistake: a cheap headline rate with heavy monitoring fees and an exit fee on GDV can cost far more than a slightly higher rate with a lighter fee structure. Lenders on our panel offer facilities with no early repayment charges, so finishing ahead of schedule simply stops the interest.
As a whole-of-market broker, we model the true total cost of every offer so you can compare like for like, and we negotiate fee levels down on your behalf.
Heavy refurbishment bridging loan calculator
Want to know how much you could borrow against your project, or what the facility will cost to repay? Try our bridging loan calculator, a quote will be displayed in seconds. Just give us a call after and we can talk through your schedule of works and structure the facility around it.
Why use heavy refurb finance?
Common Heavy Refurbishment Bridging Uses
Purchase Outside Mainstream Criteria
Acquire derelict, uninhabitable or unmortgageable property where the biggest value uplift sits.
Fund Up to 100% of Works
Build costs released in monitored stages, keeping your own capital free.
Take On Structural Value‑Add Projects
Extensions, conversions and re‑configurations that transform use, income and value.
Move at Auction Speed
Fast completion on bridging timescales, with works funding lined up behind the purchase.
Maximise Leverage on End Value
Facilities structured against GDV, up to 75% of end value with selected lenders.
Exit Flexibly
Sell at the improved value or refinance to extract equity for the next scheme.
How quickly can you get funds?
- Same day: Decision in principle
- Days 1–3: Formal terms issued
- Days 3–7: Valuation instructed
- Days 7–14: Legal & underwriting
- From day 21–28: Funds released (typically)
Heavy refurbishment bridges typically complete in 3–4 weeks, reflecting the additional underwriting and monitoring these projects require. Timescales depend on the complexity of the works, the property’s condition, planning status, and how quickly solicitors and valuers can be instructed. Where available, dual representation and search indemnity insurance can shave further days off the timeline. Tiger Financial’s lender relationships mean terms can be presented to you the same day you enquire.
What lenders look for on a heavy refurbishment application
Because the works carry structural risk, lenders will assess the project as closely as the security itself. Expect to provide:
- Schedule of works and detailed build costs, with a sensible contingency (5–10%+)
- Planning permission or evidence of permitted development rights, where required
- Details of your contractor and their track record
- Your own CV / experience with similar projects
- A realistic works programme and timeline
- Sales or valuation comparables supporting the GDV
- A clear exit strategy, sale, refinance DIP, or lease details
For heavy refurbishment loans, most lenders will also require the property to be wind and watertight before works funding is released – where it isn’t, we can structure the facility accordingly. For a general overview of what lenders look for, visit our lending criteria page.
Exit strategies for heavy refurbishment projects
Every lender will want to understand how you intend to repay the loan at the end of the term. The most common exits are:
- Sale of the completed property: Works complete, revalue, and sell at the transformed market value. Common for conversions into flats and larger flips.
- Refinance onto a buy-to-let or term mortgage: Retain the asset, refinance at the uplifted valuation, and typically extract your original equity at the same time. The standard route for HMO conversions and rental stock.
- A finish and exit facility: If the build runs over term or you want a cheaper rate once the structural risk has passed, a finish and exit bridging loan can repay the heavy refurbishment facility and fund the final works.
- Repayment from another asset: Sale or remortgage of a separate property. We can help you plan the most efficient exit from the outset.
Why Tiger Financial for your heavy refurbishment bridging loan?
Tiger Financial has arranged refurbishment funding for investors since 2004, negotiating a fast-moving and fragmented marketplace on their behalf. Heavy refurbishment is the most underwriting-intensive corner of the bridging market, and the corner where broker expertise makes the biggest difference. We assist you every step of the way: initial fact find, financial modelling, deal structuring, file submission, and active management through the legal, underwriting and drawdown process. We use our long experience to influence the underwriters, look ahead for problems and offer solutions where we can, ensuring you the very best chance of a successful outcome.
- Since 2004: An established, specialist broker
- 300+ lender panel: Terms borrowers can’t find approaching lenders directly
- Same day: Decision in principle
- Unregulated: Investor & business use only
Heavy refurbishment bridging loan faq’s
Any works involving structural alteration, or requiring planning permission or building regulations approval; extensions, loft conversions, basement works, converting a house into flats, HMO conversions with structural works, change of use, and permitted development schemes. Purely cosmetic works are classed as light refurbishment.
Rates start from around 0.7% per month, with heavy refurbishment typically priced above equivalent light refurb deals to reflect the structural risk and monitoring involved. Pricing is driven by leverage, the scale of works, planning status, your experience and the exit.
The strongest lenders can advance up to 73% NET of the purchase price on day one, plus up to 100% of the build costs released in stages, subject to an overall cap of around 70% LTGDV, up to 75% of end value with selected lenders. Facilities are available from £100k to £50m+.
Most lenders want to see a demonstrable track record with similar projects for heavy refurbishment schemes. However, requirements vary across our 300+ panel, some lenders will support less experienced borrowers where an experienced contractor and project manager are appointed and the scheme fundamentals are strong.
Where the works require planning, lenders will typically only release the works funding once consent is granted. However, bridging finance can fund the purchase while you await the planning outcome, with the heavy refurbishment facility following once consent is in place. Permitted development schemes can proceed on evidence of PD rights.
Via a day-one advance against the current value, followed by works tranches released in arrears as the build progresses, usually certified by the lender’s monitoring surveyor at each stage. Interest is only charged on funds once drawn, keeping costs down through the early phases of the build.
Not normally. Interest is rolled up or retained and repaid when the loan is redeemed at the end of the term, keeping your cash in the project rather than in debt servicing.
No, derelict and uninhabitable properties are routinely funded, and transforming them is exactly what heavy refurbishment bridging is for. Most lenders will, however, require the property to be wind and watertight before works funding is released; where it isn’t, we can structure the deal with lenders who will accommodate this.
Yes. HMO conversions are one of the most common uses, particularly where structural works, fire compliance works or licensing are involved. The usual exit is a refinance onto a specialist HMO buy-to-let mortgage at the uplifted, income-producing valuation.
Speak to your broker early. Options include a term extension with the existing lender, or refinancing onto a finish and exit bridging loan, which repays the heavy refurbishment facility and funds the final works, often at a lower rate once the structural risk has passed.
Heavy refurbishment bridging funds structural works to an existing building. Ground-up schemes, or projects where the works cost is very large relative to the property’s value, are usually better served by development finance. The boundary varies by lender, we will structure your project into whichever product delivers the best terms.