Financing property renovation

Planning a renovation project is one thing but finding the right property or development to refurbish is another.

Renovating is a challenging business but can be rewarding if done right. Part of the process is searching for a suitable property that can bring you profit once it has been refurbished.

This can be easier said than done but with a little research and preparation, you’ll be on your way to building a successful portfolio.


Finding the perfect location isn’t always about looking at the best areas in town or city centres. Look out for pipeline developments that have the potential to increase demand in city outskirts and suburbs.

Not only is property in these areas likely to be cheaper, it also has good prospects for capital growth. Choosing property near local amenities and transport links will further boost its rental and resale value.


Make sure you do your research on property you are interested in by checking out the local area and comparing property prices. It’s also a good idea to arrange local searches and check any legal documents with a conveyancer so you know exactly what you’re buying.

Look into the average length of local listings. If nearby properties have been on the market for a while, demand is likely low, possibly meaning that near-term prospects for capital growth are poor.

Boundaries and planning permission

Land registry and planning history searches are of particular importance if you are planning to renovate, as you will need to know the exact boundaries of the land and what modifications will require planning permission. For more information on applying online visit the Government’s Planning Portal.

Negotiating the price

The key to making money is when you buy the property, not sell it. By getting a bargain or cheap property when you buy, you are at less risk of making a loss and have more of a chance of making profit when you sell.

Consider getting a full survey done and obtain estimates from traders such as builders, electricians, plumbers and roofers so that you know how much the project is likely to cost. Crucially, this should not be more than you will gain in added value; if the costs are higher than expected, try to negotiate the price down further.

Find out how to accurately estimate property value.

UK building regulations

Restructuring work will need to comply with current building regulations. Be sure to factor the cost of compliance into your estimates.

Buying at auction

If you’re looking for bargain properties in need of renovation, then buying property at auction could be your best bet. Make sure you’re prepared before you go and research the properties you are interested in.

If your bid is successful, you will need to pay a 10% deposit upfront and then the rest over the next 28 days. For more advice and information about the process, read our buying property at auction article.

Renovate to attract the tenant or buyer you want

You should have a demographic in mind at the beginning of the project, so you can refurbish the property to meet their needs. This way, you won’t waste time and money creating a property that won’t sell to your target buyer or rent to your target tenant.

Find the right people for the project

Compare quotes from traders and ensure that they have the appropriate accreditation and a good reputation. You may be able to get recommendations from family, friends or fellow professionals.

How to find a good tradesman.

In addition, if you are only financing the project and not managing it, you will need to find a good project manager to oversee the renovation and liaise with traders and contractors.

Renovation finance

It can be difficult to get a mortgage for a property that is deemed unfit for occupation (for example, no plumbing system or bathroom).

Property renovation finance can be organised quickly and efficiently to cover the refurbishment costs, with the option to pay out funds in stages. Once the property has been renovated, you can then apply for a mortgage or longer-term funding.

We are not tied to a specific lender so we will undertake a comprehensive search to find a bridging loan suited to your circumstances. If you are interested, contact us to speak to an advisor.

This information should not be interpreted as financial advice. Bridging loan rates are subject to change. Speak to our advisors for a loan illustration.