Permitted & Light Development Bridging Loans

How much you can borrow will depend on the work you’re carrying out. If you’re planning to convert a property, or move forward with heavy refurbishment plans that require planning permission, you’ll need permitted development finance. This funding can stretch to £20,000,000.

Light development loans are typically used for internal refurbishment works. Examples include installing new kitchens, upgrading bathrooms or general redecoration. We can provide up to £10,000,000 for these kinds of projects.

You can utilise our permitted & light development bridging loans wherever refurbishment work is needed. Regardless of whether the work is being done for financial, legislative, or restoration purposes.

The three types of refurbishment are:

1. Converting: A conversion is a project that changes the use or function of a particular building or room. Popular spaces to convert within the home include bedrooms, basements, lofts and garages.
2. Refurbishing: Refurbishment has the potential to enrich the overall value and quality of the property. It usually relates to actions such as installing new bathrooms, kitchens, or general redecorating. Redecorating properties is a regular task performed by landlords, particularly those with Houses in Multiple Occupation. This style of property usually requires constant maintenance, as they suffer high volumes of wear and tear from a constant stream of tenants. It falls to the landlord to uphold and maintain the correct conditions for these properties.
3. Renovating: Renovation is the process of improving or modernising an old or damaged building. These types of projects are generally popular with auction buyers who are looking to ‘flip’ properties.

You can also use the funding where your properties need to be upgraded to meet new regulations. Such as the oncoming EPC rules to improve the energy-efficiency of a property. It’s also possible to use the finance to repair wear-and-tear damage from renters. And of course, you’ll also be able to upgrade your property. Potentially raising its value and making it more desirable to buyers and tenants.

As we do not supply a development finance for ground up development loans, this means we can only supply a refurbishment bridging loan once planning permission is granted, or if none is necessary.

You can use this funding for a range of property types, spread across residential, commercial, and semi-commercial assets. Furthermore, you’d be eligible for this refurbishment bridging loan, if you purchased your property through an auction and it now needs some upgrading. We also provide Houses in Multiple Occupation (HMO) conversion loans. This allows landlords to potentially increase their monthly yield by converting their current buy-to-let property into a house of multiple occupancy. So long as they’re based in England and Wales, we may be able to help with your refurbishment plans.

If you’re the owner of student accommodation, we could help refurbish the property in time for the next academic year. Or, if you own office space going to waste, we can help you convert it into prime location apartments. We’ll adapt to your plans and support your long-term goals.

Our refurbishment bridging loans can provide you with funding in a pinch. If your property is damaged, or needs an upgrade before it can be marketed, our funding can be issued quickly to help you stay profitable.

You could also benefit from our flexibility where unexpected issues emerge. Perhaps you started a conversion project, only to discover major plumbing problems that need sorting first. Or maybe the contractors you were planning to use are no longer in business, leaving you with a looming deadline and limited options.

Refurbishment work may become a necessity for many over the coming years. Especially for landlords. EPC legislation is on the way to keep our property stock green, while buy-to-let investors are facing stricter rules on keeping their properties up to scratch. If you fall behind, fines and even some jail time could be on the horizon.

There may be little leeway in rectifying these issues where they emerge. You may be expected to jump on problems – especially those that are environmental – and fix them asap. Our funding could allow you to do this, and even get you ahead of the game.

We understand how likely these problems are in the property world. We’ll take them into account when assessing your claim.

So long as you’re aged between 21 and 85, you’ll likely be eligible for our refurbishment bridging loans. You can come to us as an individual investor, or through a business arrangement. We’re happy to work with self-employed workers, LLPs, SPVs, trusts and more.

We can also work with you if you’re based overseas. We consider applicants from any country, except those that are sanctioned or blacklisted.

We can have funding issued in as little as 3 days, so long as everything is accounted for. Typically, we find most of our deals complete in around 2 weeks.

Exit fees are applicable for our permitted & light development bridging loans, with the amounts determined at the point of application. There is an arrangement fee of 1% across all our bridging products.

We have no admin fees, while commitment fees are refunded on drawdown. From the start of your claim, you’ll have a dedicated underwriter, who will keep you up to speed on the costs involved.

Where our other bridging loans may be used for a property purchase, our permitted & light development bridging loans may primarily be utilised for assets already owned. All claims are assessed on their own merits, which is the same across all of our products.

We’ll need information on what kind of works the refurbishment bridging loan will be used for. We’ll also need to know how far along you are in the process – whether you’re refurbishing, renovating, or converting. As with all our products, your personal information will also be required. Our underwriters will work with you to gather information on your background, finances, and exit strategies.

You can contact us for your refurbishment bridging loan to get the ball rolling. We can be reached over the phone, through email or via our website. All our details can be found on our contact page.