Refurbishment & Renovation Bridging Loans For Property Developers In London
As a specialist property development finance broker, I work with new and growing developers every day who need fast, flexible funding to unlock the true value of a property.
If you’re new to property investment or planning your first refurbishment or renovation project in London, understanding how bridging finance works can give you a major head start. The right bridging loan can help you purchase a property quickly, finance the works, and increase the property’s value—even if you don’t have a huge deposit or experience.
At Sunrise Commercial, we source refurbishment bridging loans designed for investors just like you—offering high loan-to-value ratios, 100% of works funded, and clear, staged drawdown processes to keep your project on track.
Here’s what you need to know.
What Is a Refurbishment Bridging Loan?
A refurbishment bridging loan is a short-term loan designed to help you buy and improve a property quickly—usually one that’s below market value, in need of work, or unmortgageable in its current condition.
The idea is simple: buy low, add value, exit via sale or refinance.
This type of finance is perfect for:
- Auction purchases
- Below-market-value (BMV) acquisitions
- Properties that need more than just cosmetic upgrades
- BRRR (Buy, Refurbish, Refinance, Rent) strategies
- Semi-commercial assets with residential elements
Who Are These Loans For?
I regularly arrange this type of loan for:
- First-time developers and investors
- Landlords expanding their portfolios
- Investors looking to flip for profit
- Clients with little upfront cash but strong deals
- Anyone needing to complete fast, especially in competitive markets like London
Refurbishment loans are all about unlocking value. If you’ve found a property with potential, I can help you fund both the purchase and the refurbishment works—often with minimal capital input.
Key Loan Features I Can Arrange for You
Based on your deal, experience, and goals, I work with lenders who offer the following:
Up to 85% Loan-to-Value (LTV)
This means you only need to put down a smaller deposit of the purchase price, keeping your capital free for other deals or contingencies.
Up to 95% of Purchase Price
With a strong enough deal, you could fund up to 95% of the purchase, significantly reducing your initial cash outlay.
100% of Refurbishment Costs Covered
Many of the lenders I work with will fund the full cost of the refurbishment works, provided the deal stacks up. This includes both cosmetic updates and structural improvements (not just paint and carpets).
Funds are usually released in arrears, based on staged inspections. This protects both you and the lender by ensuring the project is progressing as planned.
Up to 75% of Gross Development Value (GDV)
Loans can be structured against the expected end value of the property post-refurb. This helps you borrow more and stretch your capital further, especially if the uplift in value is significant.
Loan Sizes from £50,000 to £1.8m+
I work with lenders offering minimum loans as low as £50,000, which is ideal for first-time flippers or small refurb projects. On the other hand, if you’ve got a larger semi-commercial deal, we can source loans well above £1.8 million.
What Works Can Be Funded?
This is where my role as a broker becomes key. Not all lenders are the same—some will only fund minor improvements, while others will consider structural works and more complex refurbishments.
Common fundable works include:
- New kitchens and bathrooms
- Rewiring and plumbing
- Plastering, decorating, flooring
- Internal layout changes (walls removed or added)
- Light structural work (with appropriate oversight)
- Energy efficiency improvements
For smaller projects (under £50k in refurb costs), lenders often require an Asset Manager to verify works before releasing staged payments. I’ll help coordinate that as part of the loan setup.
How the Staged Drawdowns Work
One of the most common questions I get is: “If the lender funds 100% of the works, how do I pay my builder?”
Here’s how it works:
- You start the project with initial capital (sometimes advanced from the loan).
- Work is completed in stages, e.g., kitchen fitted, bathroom upgraded.
- A lender-appointed Asset Manager inspects the progress.
- Funds for completed works are released into your account.
- You move to the next stage, and the process repeats.
I guide clients through this step-by-step, ensuring the cashflow aligns with your contractor schedule.
What’s the Exit Strategy?
This is critical. Every refurbishment loan needs a clear exit plan, and I’ll help you build one that lenders can trust.
Most borrowers exit via:
- Sale – You sell the property at a profit once works are done.
- Refinance – You move onto a buy-to-let or commercial mortgage, release equity, and either hold or reinvest.
The key is to plan the exit before you apply. I’ll help you present your deal clearly—highlighting end values, timelines, and strategy—so lenders have full confidence.
Why Use a Broker Like Me?
You might be wondering, “Why not just go straight to a lender?”
Here’s the truth: the best deals aren’t on comparison sites, and most lenders only work through approved brokers.
When you work with me at Sunrise Commercial, you benefit from:
- Access to specialist lenders not available direct
- Negotiated rates and terms based on deal structure
- Support building your exit strategy
- Help preparing valuations and costings
- Hands-on guidance from enquiry to exit
- Experience working with first-time and small-scale developers
I’ll do the heavy lifting—sourcing the right lender, structuring your deal, and keeping it moving so you can focus on the project.
Ready to Fund Your Next Deal?
If you’ve got a property in mind—or you’re just researching your first investment—I’d love to speak with you.
Let’s talk through your goals, walk through the numbers, and find out if you can secure a refurbishment loan that covers up to 95% of purchase and 100% of works.
You can contact me directly via the website:
www.sunrisecommercial.co.uk
Or drop a message for a quick call-back. I’ll be happy to review your deal for free.
📞 Call us at 07939 091418
📧 Email: john@sunrisecommercial.co.uk
🌐 Visit: https://www.sunrisecommercial.co.uk/
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