Cosmetic and non-structural works
Light Refurbishment Finance
Bridging finance for projects that modernise a property without touching its structure. Up to 75% LTV on the purchase, up to 100% of works funded in arrears, and completions in weeks, not months.
Typical light refurb terms
What lenders class as a light refurb, and why it matters
The light label is not about how much paint you buy: it is a risk category. Because the property stays structurally untouched and mortgageable throughout, the lender's security never deteriorates, so more lenders compete, pricing is keener and the monitoring is lighter, often photo evidence rather than site inspections. Kitchens, bathrooms, rewiring, heating, windows, redecoration and flooring all sit comfortably inside the category.
The practical consequence: a genuinely light project should never pay heavy-refurb pricing. A surprising number of light refurbishment loans do, usually because the schedule of works was written in a way that spooked the lender. As a specialist broker we often reclaim 0.10 - 0.20% per month on a light refurbishment bridging loan simply by presenting the works accurately. The difference between the two classifications, and the grey areas between them, are covered in our light vs heavy guide.
Structurally these are first charge bridging loans secured on the property being improved: you can borrow against the purchase or against a property you already own, and the works element of the bridging loan sits alongside the day-one advance in one facility. The same property finance structure covers single refurbishment projects and repeat programmes across a portfolio.
How the bridging loan works-in-arrears mechanism runs
- Facility agreedPurchase advance completes the buy; the works facility is committed but undrawn, so no interest accrues on it yet.
- You fund a stageFirst fix, for example. You pay the contractor from your own working capital.
- Evidence and reimbursementPhotos or a short inspection evidence the completed stage; the lender releases that tranche, normally inside a week.
- Repeat to completionYour cash recycles through each stage instead of covering the whole schedule at once.
A worked example: auction flat, 12-week turnaround
Worked example
Auction purchase of a 2-bed flat at £120,000, £22,000 works (kitchen, bathroom, redecoration, flooring), £175,000 end value, exit by sale.
Figures
Indicative figures for illustration only. Lender criteria vary and every figure is confirmed in a formal offer. Sale costs and tax are excluded from the gross uplift shown.
When light refurb finance is the wrong product
If your project includes an extension, structural opening, conversion or anything needing planning, forcing it through a light facility risks a funding gap mid-project, the most expensive problem in refurbishment. Those projects belong with heavy refurbishment finance. Equally, if the property is already lettable and the works are minor, a refurbishment mortgage may beat a bridge on total cost. We will tell you which applies before you commit to either.
Light refurbishment finance questions
Work that is cosmetic or non-structural and needs no planning permission: new kitchen and bathroom, full redecoration, rewiring, new heating or boiler, replacement windows and doors, flooring, damp treatment and general modernisation. Rule of thumb: if the footprint, structure and use of the building do not change, it is light.
Lenders draw it at structure, planning and cost. Moving or removing internal walls is often still light; extensions, loft or basement conversions, structural repairs and any change of use are heavy. Many lenders also reclassify projects where works cost more than about 50% of the property value. Our guide on light vs heavy refurbishment covers the grey areas.
Yes. Light refurb is the most accessible product in bridging: many lenders on our panel will fund a first project, particularly with a competent contractor quoting the works. Expect pricing toward the upper end of the range until you have a completed project behind you.
Typically 25% of the purchase price plus fees, with the works element separately funded up to 100% in arrears. On a £200,000 purchase with £30,000 of works, plan for roughly £55,000 to £60,000 of cash including fees and a contingency.
Two to four weeks is normal where the legal pack is clean, and faster is possible with a desktop valuation on straightforward properties. Auction purchases with 28-day deadlines are a routine use of this product.
Talk to us about your project
Tell us the property, the schedule of works and the exit. We will come back with indicative terms, usually the same working day.