Loan options for financing property renovation
- Loans from £25,000 to £25,000,000
- Borrow from one day to 24 months
- Quick access to funds for all development projects
We can provide short term finance and bridging loans specifically designed to fund your development or renovation projects, however big or small.
With a fast turnaround, you can receive funds within a matter of days, and then in stages throughout the project.
This keeps the costs down as the interest is only payable on the funds you receive. Renovation finance can cover the costs of restoration, expansion, renovation and construction projects, giving you the flexibility and time to complete work successfully.
Reasons to use renovation finance
Renovation finance can be used for a range of purposes including:
- industrial units
- housing developments
- residential property
- derelict houses
- retail parks and developments
- office blocks, hotels and care homes
- conversions of pubs
- business refits
- land development
- agricultural development
- conversions of industrial premises
- conversions into flats or other dwellings
- modernising property
- refurbishment of offices, flats, shops and restaurants
- construction of commercial property
Researching property renovation projects
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. You should also have a contingency fund – renovation projects can, and frequently do, cost more than you think!
Between 10 and 15% of the total cost (purchase plus the assumed cost of work) is a good amount to have set aside.
It is also possible to fund the project in stages; once the property is habitable, for instance, you could use a mortgage to repay the bridging loan you used to finance the purchase initially.
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
Consider having a full survey done and obtain estimates from traders such as builders electricians plumbers roofers so that you know how much a project is likely to cost crucially this should not be more than you will gain in" added value if costs are higher than expected try to negotiate down further
UK building regulations
Restructuring work will need to comply with current building regulations. Be sure to factor the cost of compliance into your estimates.
How to find the right contractor
You can find a list of expert building contractors in the Building Conservation Directory. They specialise in the repair and restoration of historic buildings. To avoid getting a cowboy builder or contractor, make sure they are a member of the Federation of Master Builders.
It is always a good idea to get quotes from at least three companies so you can compare services and fees. You need to be absolutely clear on what they offer as well as the level of responsibility they are willing to take on. Make sure you collect references and ask to see a portfolio of previous work to check they have appropriate experience.
If they can’t offer you either of these, they probably won’t be up to the job. In the UK the Civil Engineering Contractors Association founded the Construction Alliance, which comprises the following three federations who offer various services when it comes to finding a builder in your local area.
The National Federation of Builders has been in operation since 1896 and is a not-for-profit organisation serving England and Wales. The NFB supports small- to medium-sized building contractors and you can search their member database to find a builder in your local area.
Renovating uninhabitable property
In order to qualify as uninhabitable a property will be in need of either “structural alterations” or “major repair work”. A summary of what each might constitute is below, but largely this refers to unsound foundations, walls, floors, ceilings or roofs.
A property is uninhabitable if it is subject to one or more of the following types of structural problem:
- The roof is structurally unsound significant work is needed to make it safe
- The chimney needs to be rebuilt
- The external walls are being rebuilt
- Significant work is being done to the property foundations
- Solid floors or floor joists need replacement
- Internal walls have been removed
- Ceiling joists or defective walls need replacement
Major repair work
A property is uninhabitable if it is in need of the following major repair work:
- Gutting the property
- Removal of all plaster from walls
- Taking down the majority of the ceilings
- Removing timber walls
- Installing new water tanks
- Installing new damp proofing
If you need a bridging loan for an uninhabitable property purchase, call our experienced team of advisers on the number above for the best advice and a quote on available products in the marketplace.
Why choose us?
Commercial Trust is an specialist broker with expertise in short term bridging loans which are well suited to providing property renovation finance. We will undertake a comprehensive product search to find the most suitable renovation finance for your situation. We are not tied to a specific lender.
We also have access to buy to let, commercial and open and closed bridging loans, covering a whole range of purposes. For a friendly service and a fast turnaround, contact us today. Our expert advisors can assess your personal circumstance and recommend a loan to suit you.