How to organise refurbishment finance checklist


Checklist provided by


Brooklands Commercial Finance


The benefits of refurbishing property are:

  • Boosts total profits

  • Increased value of the property – capital growth

  • Cuts down long-term maintenance costs

  • Increased rental income

  • Attracts higher quality tenants

  • Secures tenants quicker

In order for a property to be deemed suitable for mortgage purposes, it needs to be habitable, wind and water tight and be fully functional (kitchens and bathrooms). Refurbishment finance is a popular option, and is often used to bridge a funding gap until a conventional buy to let mortgage is available or the property is sold.

Refurbishment of properties can be classified into light refurbishment and heavy refurbishment. The former would include new bathrooms and kitchens, electrics, plumbing, plastering and decorating. The latter would include works that require planning consent and also change of use, for example, offices to flats and public houses to Houses in Multiple Occupation (HMOs).

Is the broker FCA regulated?
Is the broker a full member of the National Association of Commercial Finance Brokers?
  Check with the broker what experience they have in sourcing such finance.
  Ensure you understand any planning and building control requirements.
  Will you oversee the refurbishment or use a project manager?
  Take up references on all the tradespeople that will be involved.
Calculate the refurbishment costs, breaking down the labour and material costs.
Know the time frame for the refurbishment work.
Ensure you know the broker’s and lender’s fees, including, arrangement and exit fees and interest rates on money drawn down.
Calculate your total costs, including, purchase price, Stamp Duty, legal costs, finance charges and refurbishment costs.
Evaluate what the Gross Development Value (GDV) will be.
Establish how much you will be able to re-mortgage for, and hence, how much of your money will be left in.
Is the borrower going to be a limited company or an individual?


All our information is brought to you by Kate Faulkner OBE, author of Which? Property books and one of the UK's top property experts.
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