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Refurbishment Loan
Refurbishment Loan - Refurbishment Finance
Breathing new life into a commercial property can be a very rewarding, yet financially draining process. A refurbishment loan can help you to complete your refurbishment project and spread the costs into convenient monthly repayments.
What is a UK refurbishment loan?
Refurbishment loans, also referred to as property refurbishment finance, are short-term loans tailored to the needs of property investors, landlords and property developers. Refurbishment loans can be used to cover the cost of refurbishing or renovating a property before it is sold or rented.
Refurbishment finance is calculated based on the value of a refurbishment project once it is completed (or the gross development value). A lender may choose to release the capital in stages, or over a period of time as different stages of the refurbishment project are completed. The loan amount and repayment time frames can vary depending on the scope of the project, and whether or not commercial refurbishment finance is needed to cover part of the property purchase.
For many businesses, a refurbishment loan is a vital lifeline to allow increased spending on refurbishment projects. In many renovation or refurbishment projects, unexpected costs and delays can often arise, for example, if damp is discovered in a property. A refurbishment loan helps protect a commercial developer against unforeseen costs and allows them to complete refurbishment projects in a timely manner.
One potential limitation of applying for a refurbishment loan, however, is if the completed refurbishment project is not valued as highly as predicted, the borrower may owe the lender additional capital.
There are some unique considerations for applying for a refurbishment loan in the UK. To help make the process easier for you we have compiled a FAQ guide about refurbishment loans
Start Your Refurbishment Loan Application With Us Today!
To learn more about refurbishment loans, contact UK Business Loan today. We have a simple, straightforward 4-step online application form that will help get you started. For more information about loan terms and conditions, fill in the application form or get in touch with one of our expert team members today. We look forward to hearing from you.
Have Refurbishment Finance Questions?
Refurbishment loans are suitable for both light and heavy refurbishments. They can, therefore, cover anything from light decorating work to large structural works, for example, converting an office block into flats.
For heavy refurbishments, a lender will most likely want to see a schedule of works. For lighter refurbishment works, such as fitting a new kitchen, a lender may not require to see a schedule. If requested, however, a schedule of works should always be provided to a lender.
You should have your full contact details, the address of the property intended for refurbishment, how much you need to borrow and how you plan to spend the borrowed capital on-hand when applying for a refurbishment loan.
A secured refurbishment loan is a loan that is secured against capital or assets. For example, real estate, cash equivalents and stock can be backed against a secured refurbishment loan. If you are unable or would prefer not to provide collateral for a loan, you may wish to consider unsecured refurbishment loans.
You must be 18 years or older and be a UK resident living in the UK. Your credit score may be analysed in the application process, though this will be at the discretion of the lender.
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