Heavy Refurbishment Bridging Loan for Major Property Renovation

Many property developers prefer quick access to refurbishment funds rather than drawing money down in stages. However, most lenders require works to be completed before releasing each tranche of funding.

In this case study, Positive Commercial Finance arranged a Heavy Refurbishment Bridging Loan that provided the full refurbishment budget upfront, allowing an experienced developer to complete a major renovation without ongoing monitoring or staged drawdowns.

The Opportunity

Our client had purchased a property in Manchester with planning permission to extend and transform an outdated three-bedroom semi-detached house into a modern five-bedroom family home.

The project involved extensive refurbishment and structural works designed to maximise the property’s value.

The Challenge

The client wanted to fund the entire cost of the refurbishment through a single loan advance.

However, this created a challenge because:

• Most bridging lenders release refurbishment funds in stages.
• Development finance lenders usually require drawdowns after works have been completed.
• Ongoing monitoring, inspections and multiple drawdown requests would increase both administration and project timescales.

The client wanted a simpler funding solution that provided immediate access to the full refurbishment budget.

Our Solution

Positive Commercial Finance identified a specialist lender willing to take a pragmatic approach.

Thanks to the client’s strong development experience and the relatively low 53% Loan to Value (LTV), the lender was comfortable advancing the refurbishment funds in one lump sum rather than through staged payments.

This gave the developer immediate access to the capital needed to complete the project while avoiding unnecessary delays and administration throughout the build.

Deal Structure

• Loan to Value (LTV): 53%
• Interest Rate: 0.65% per month (interest retained)
• Arrangement Fee: 2%
• Exit Fee: None
• Term: 12 months

The Result

The client secured a competitive Heavy Refurbishment Bridging Loan that provided the entire refurbishment budget upfront.

As a result, they could focus on completing the renovation without waiting for inspections or requesting additional drawdowns during the project.

This flexible funding structure simplified the build process, reduced administration and helped keep the refurbishment on schedule.