Types of properties for light refurbishments
Light refurbishment bridging loans are usually applied to:
- Single dwelling residential properties
- HMO residential properties
- Semi-commercial and commercial properties
- Occasionally they can be used to convert a residential property to a small HMO.
Light refurbishment bridging finance can also be taken out by individuals, companies or trusts.
Types of work that can be carried out on a light refurb
There is no legal definition of light refurbishment works, but they are understood by lenders to fall into the quicker end of improvement, refurbishment or conversion works – where planning permission isn’t required. For example, these light refurbishment works could be:
- Installation of a new kitchen or bathroom
- General decoration to improve the presentation of the property in order to increase its rental value
- Installation of new windows
- Rewiring the property
- Adding central heating
- Carrying out non-structural improvements
- Sometimes, to convert a single dwelling residential property to an HMO where only light work is required
Difference between light and heavy refurbishment mortgages
So, we’ve covered the scope of light refurbishment mortgages, but how do they differ from heavy refurbishment mortgages? The difference lies in the scale of the necessary works. Heavy refurbishment bridging loans are used where structural changes are required and where planning permission is necessary. These products might be used to fund:
- Any project which requires planning permission or building regulations
- Structural works to the interior or exterior of the house
- significant conversion
- A property extension
For works which are yet more significant – such as rebuilding a property or developing an apartment block, there will be more appropriate forms of development finance available. Contact the expert team at Hank Zarihs Associates for advice and a tailored illustration from our lending panel within the hour!
It’s worth noting that light refurbishment mortgages tend to be less expensive than heavy refurbishment mortgages due to the lower risk of a timely redemption within the bridging loan term (usually 6 months to 2 years.) For both types of refurbishment mortgage, a deposit of 75% more is expected.
Loan repayments can be as low as 0.43% pm for a 50% LTV on a residential light refurbishment mortgage, although rates vary widely – contact Hank Zarihs to find out what the most competitive rates are for your project right now. Interest can also be serviced in different ways depending on your needs – for example, it can be serviced monthly, rolled-up or part rolled-up.
Call us today!
To find out the various mortgage options for renovations, please contact the Hank Zarihs Associates team from 9 am to 9 pm, Monday to Friday, on 44 (0) 20 3889 4403. Alternatively, complete the web call back form on our website and let one of our team contact you at a time that best suits your needs.