Refurbishment Bridging Loan for a Property Renovation in Harrogate

 This case study shows how we helped two first-time property investors secure 98% purchase funding and 100% refurbishment costs to transform a residential property in Harrogate.

The Challenge

Our clients had identified a residential property in Harrogate with significant potential but requiring extensive refurbishment before it could achieve its full market value.

The purchase was being made through a Special Purpose Vehicle (SPV) as the first project in what the clients hoped would become a long-term property investment business.

One client was an experienced landlord, while the other was completely new to property development. To provide lenders with greater confidence, the refurbishment works were agreed under a fixed-price contract with an experienced local builder.

A detailed build programme was also prepared, allowing the lender to structure staged drawdowns for the refurbishment costs.

The clients needed a funding solution that would:

• Maximise borrowing for the property purchase
• Fund the full refurbishment costs
• Keep their own cash investment to a minimum
• Support the successful completion of their first investment project

Our Solution

Positive Commercial Finance arranged a Refurbishment Bridging Loan that provided 98% of the purchase price on completion.

To achieve this level of borrowing, the lender took a first charge over the property being purchased and a second charge over another property owned by the clients.

The lender also agreed to fund 100% of the refurbishment costs, releasing the money in two staged drawdowns as the works progressed against the agreed build schedule.

This flexible funding structure allowed the clients to acquire and renovate the property without tying up significant amounts of their own capital, giving them the confidence to begin building their property investment portfolio.

Deal Structure

• Purchase Funding: 98% of the purchase price
• Refurbishment Costs: 100% funded in two staged drawdowns
• Loan to Value (LTV): 48% (using additional security)
• Interest Rate: 0.85% per month (interest retained)
• Arrangement Fee: 2%
• Exit Fee: None
• Term: 12 months

The Outcome

The clients successfully purchased the property and secured funding for the entire refurbishment programme, allowing works to begin immediately.

Once the renovation is complete, they plan to sell the property and reinvest the profits into future projects, taking the next step towards growing a successful property investment business.

This case study demonstrates how a Refurbishment Bridging Loan can help both new and experienced investors acquire and renovate property with minimal upfront capital, making ambitious refurbishment projects more accessible.