Light vs Heavy Refurbishment: How Bridging Loans Differ

Written by: Sean Horton CeMAP

Buying a property that needs work takes careful planning, especially when it comes to funding.

Whether you’re looking at a small makeover or major building work, bridging loans offer a straightforward way to finance these improvements. But there’s quite a difference between funding a fresh coat of paint versus adding an extension.

Let’s look at how bridging loans work for both light and heavy refurbishments, so you can better understand which might suit your project.

Understanding Refurbishment Bridging Loans

Bridging loans for refurbishments are short-term lending options secured against property.

They fill the gap between buying a property and either selling it or moving to long-term finance. Unlike standard mortgages, these loans focus on your property’s potential value after improvements, rather than just its current worth.

You’ll often see two main types:

  • first charge loans, which are the main loan on a property
  • and second charge loans, which sit behind an existing mortgage

Both can work well for refurbishments, but your choice might depend on whether you already have finance in place.

Light Refurbishment Projects and Funding

What Counts as Light Refurbishment?

Think of light refurbishment as giving a property a facelift. You might be updating kitchens and bathrooms, replacing windows, fixing electrics, or giving everything a fresh coat of paint.

These changes improve the property’s look and function but don’t alter its basic structure.

The good news?

This type of refurbishment work won’t need planning permission. You can start work quickly once you have your funding in place. For example, if you’ve bought a dated three-bed semi that needs modernising, a light refurbishment loan could cover new flooring, decorating, and updating the bathroom suite.

Light Refurbishment Bridging Loan Features

These loans usually work in stages. You get an initial amount to buy the property, then additional funds for improvements, and perhaps a final sum to finish off. The whole process moves faster than with bigger projects because there’s less red tape involved.

Heavy Refurbishment Projects and Funding

What Qualifies as Heavy Refurbishment?

Heavy refurbishment involves significant structural changes. You might be adding extensions, converting lofts, or completely reconfiguring internal layouts.

These projects almost always need planning permission and must comply with building regulations.

A good example would be turning a large Victorian house into flats, or adding a two-storey extension to increase living space.

These projects take longer, cost more, and need careful planning.

Heavy Refurbishment Bridging Loan Features

These loans reflect the bigger scale of work involved.

You’ll usually need detailed plans, cost breakdowns, and sometimes proof of planning permission before the loan is approved. Lenders release money in stages as work progresses, checking the quality of completed work before releasing the next payment.

Key Differences

The main difference lies in what you plan to do with the property.

Light refurbishment means cosmetic improvements – you’re updating rather than transforming the building.

This might include:

  • New kitchens or bathrooms
  • Fresh decoration throughout
  • Replacing windows or doors
  • New flooring or carpets
  • Basic repairs and maintenance
  • Updating electrics or plumbing

Heavy refurbishment means significant building work that changes the property’s structure or use.

These projects include:

  • Adding extensions
  • Converting lofts or basements
  • Removing load bearing walls
  • Changing a building’s use (like offices to flats)
  • Major structural repairs
  • Full property reconfiguration

These differences in scope affect how the loans work.

Light refurbishment loans are more straightforward – you know what needs doing, how much it’ll cost, and roughly how long it’ll take. Lenders see these as lower risk projects, so getting your money is usually quicker and simpler.

Heavy refurbishment loans need more groundwork. You’ll need detailed plans, accurate costings, and often planning permission before a lender will say yes. The money usually comes in stages as you complete each phase of work. This staged approach helps manage the bigger risks that come with major building projects.

Who Uses Refurbishment Bridging Loans

Property investors can use these loans to improve properties before selling or letting them out.

Landlords might need them to upgrade properties to meet new energy efficiency rules.

Developers use them for larger conversion projects, while homeowners might use them to break property chains or improve unmortgageable properties.

How a Broker Can Help

A specialist broker knows which lenders suit different types of projects.

They’ll understand whether your plans count as light or heavy refurbishment and can match you with lenders who specialise in similar projects. They’ll also help you present your application in the best light and often have access to deals you won’t find directly.

If you’re planning a property refurbishment, speaking with a broker early on can save time and help you understand all your options. They’ll guide you through the process and help you find the most suitable funding for your specific project.

When choosing between light and heavy refurbishment bridging loans, it comes down to your project’s scope.

If you’re mainly updating fixtures, fittings, and décor, a light refurbishment loan should cover your needs. For structural changes or major building work, you’ll definitely need a heavy refurbishment loan.

Start by mapping out your project in detail.

Include all the work you want to do, potential timeframes, and costs. This will help you – and your broker – determine which type of loan best matches your plans. Don’t forget to factor in some extra time and money for unexpected issues.

Next Steps:

  • Gather your property details and project plans
  • Work out rough costings for the work
  • Think about how you’ll repay the loan
  • Get in touch with a broker to discuss your options

Want to learn more about funding your refurbishment project? Give us a call. We’ll help you understand your options and find the right solution for your plans.

Sean Horton is a co-owner of Drake Mortgages and has worked in financial services, mortgages and insurance since 1988. He regularly writes about mortgages, bridging loans and commercial finance.
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