Complete guide to bridging finance for property renovation: light refurb to major development projects, staged drawdowns, GDV calculations, and planning strategies. Expert guidance from FastBridge Funding.
Max LTV
Up to 75%
100% Refurb
Possible
Rates From
0.45%
From light cosmetic work to major development—bridging finance adapts to your project scope
Cosmetic updates, decorating, minor repairs
Cost Range
£5,000-£30,000
Timeline
4-8 weeks
Max LTV
Up to 75% of ARV
Typical Rates
From 0.45% monthly
Quick refinance to mortgage or sale
Structural work, major renovations, complete rewire/replumb
Cost Range
£30,000-£150,000
Timeline
8-16 weeks
Max LTV
Up to 75% of ARV
Typical Rates
From 0.50% monthly
Refinance or strategic sale
Extending, converting, major structural changes, planning required
Cost Range
£150,000-£500,000+
Timeline
16-52 weeks
Max LTV
Up to 70% of GDV
Typical Rates
From 0.50% monthly
Sale post-development or hold for yield
How refurbishment bridging works from acquisition through project completion
5-7 days to completion
Purchase property with bridging loan based on ARV (After Refurbishment Value)
•Lender assesses property's potential value post-refurbishment, not current condition
2-4 weeks
Secure planning permission if needed, obtain Building Regulation approval, appoint contractors
•Some bridging lenders can drawdown funds before work commences to cover soft costs
Throughout project
Release funds progressively as work completes key stages (foundations, structure, fit-out)
•Contractor deposits typically 25% upfront, 50% mid-stage, 25% completion. Borrower needs working capital.
Ongoing throughout project
Lender's surveyor inspects work at each stage before releasing next drawdown
•Lender protects investment and ensures work quality. Delays if work is substandard.
Variable - 3 months to 2+ years
Project complete, Building Regulation completion certificate obtained
•Exit via refinance to mortgage, sale, or hold-to-rent. Bridge repaid from refinance or sale proceeds.
How lenders calculate loan amounts based on post-refurbishment property value
£250,000
Market value of property in current condition
£80,000
Full project budget including labor, materials, contingency
£350,000
Estimated market value post-completion. Conservative 10-20% uplift typical.
£350,000
For refurbishment, GDV equals ARV. For multi-unit development, total of all units.
£262,500
At 75% LTV: Purchase (£250k) + Refurb (£80k) ÷ GDV (£350k) = 94% of funds available
£67,500
If total cost £330k but LTV allows £262.5k, you need £67.5k equity or contingency
| Aspect | Light Refurbishment | Heavy Refurbishment | Full Development |
|---|---|---|---|
| Scope of Work | Cosmetic updates, minor repairs | Structural renovation, major systems | Extension, conversion, new build |
| Typical Cost | £5,000-£30,000 | £30,000-£150,000 | £150,000-£500,000+ |
| Timeline | 4-8 weeks | 8-16 weeks | 16-52 weeks |
| Planning Permission | Usually not required | Often required for major work | Always required |
| Max LTV | Up to 75% of ARV | Up to 75% of ARV | Up to 70% of GDV |
| Typical Rates | 0.45-0.60% monthly | 0.50-0.70% monthly | 0.55-0.80% monthly |
| Exit Strategy | Quick refinance or sale | Refinance to mortgage or sale | Sale, hold-to-rent, or refinance |
| Lender Flexibility | High - many mainstream lenders | Medium - specialist lenders | Lower - requires specialist lender |
Purchase rental property, refurbish, refinance to buy-to-let mortgage
✓ Eligible
Strong rental yields needed to cover bridging interest while refurbishing
Purchase undervalued property, refurbish, sell for profit within months
✓ Eligible
Tight timeline demands; typically 6-12 months maximum bridge term
Multiple refurbishment projects simultaneously using bridge portfolio financing
✓ Eligible
Larger funding available; exit strategy must be clear for each property
Convert residential to multiple occupancy houses, refurbish, refinance or hold
✓ Eligible
Planning permission required; HMO license needed; lender approval for HMO value
Convert residential building to office, retail, or mixed-use
✓ Eligible
Planning and Building Regulation critical; specialist lender needed
Multi-property developments on land with multiple exit units
✓ Eligible
Larger lenders, stronger security, multi-stage drawdowns essential
Understanding all costs involved in refurbishment bridging projects
1.5-2.5% for refurbishment projects
Higher than standard due to project management complexity
0.45-0.80% monthly depending on risk
Light refurb cheaper than heavy; development typically highest
Some lenders charge per drawdown (£100-£500)
Factor into budget if multiple stage payments planned
10-20% of refurbishment budget
Overruns common; budgeting excess prevents funding gaps
£2,000-£15,000 for architects/engineers
Varies by project scope; necessary for planning/Building Reg approval
£500-£3,000
Contractor insurance, Building Control inspections, temporary insurance
£300-£1,500 initial + stage inspections
Lender requires stage inspections before each drawdown release
£5,000-£30,000
Council fees, planning, surveys, legal, temporary accommodation, security
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