Manchester Property Developers: How to Fund Your Next Project with Refurbishment & Renovation Bridging Loans (Even with Limited Capital)
If you’re a small-scale or first-time property developer eyeing a value-add opportunity in Manchester, securing fast, flexible finance can make all the difference between landing a deal and missing out.
As a specialist property finance broker, I work with developers just like you — people who have the vision to turn rundown properties into profitable investments, but need the right finance partner to make it happen. That’s where refurbishment and renovation bridging loans come in.
In this guide, I’ll break down exactly how these loans work, what’s available right now for developers in Manchester and across the UK, and how you can use bridging finance to cover up to 100% of your refurbishment costs — even if you’ve never done a project before.
What is a Refurbishment Bridging Loan?
A refurbishment bridging loan is a short-term property finance solution used to purchase and renovate a property before selling it or refinancing onto a long-term buy-to-let mortgage. It’s ideal for:
- Residential buy-to-lets
- Semi-commercial properties
- Auction purchases
- Light and heavy refurbishments
- Properties not currently mortgageable
These loans are flexible, fast, and tailored for projects that involve adding value through renovation.
Key Loan Features Available Right Now:
As a broker working with a panel of specialist lenders, I can access a range of highly competitive bridging loans, including:
- Up to 85% Loan to Value (LTV) on the gross loan
- Up to 95% of the Purchase Price
- Up to 100% of Refurbishment Costs (funded in arrears and in stages)
- Up to 75% of the GDV (Gross Development Value)
- Loan amounts from £50,000 up to £1.8 million
- Funding for structural as well as non-structural works
- Asset Manager only (no monitoring surveyor) for refurb budgets under £50k
Gross vs Net LTV – What You Need to Know
One thing that often confuses new developers is the difference between gross and net LTV:
- Gross LTV refers to the loan as a percentage of the property’s value — before any fees or interest are deducted.
- Net loan is what actually lands in your bank account after the lender deducts arrangement fees, interest (which may be retained or rolled up), and other costs.
So while a lender might offer you up to 85% LTV, the net advance will typically be lower — somewhere around 75-80% — depending on the structure of the loan. As your broker, I’ll walk you through the exact figures and make sure the loan you receive is enough to get the deal over the line and into refurb mode.
How the 100% Refurbishment Cost Funding Works
Yes — it’s genuinely possible to get 100% of your refurbishment costs funded, even on your first project. But here’s how it works in practice:
- Refurb funds are not paid upfront.
- They’re released in arrears, in agreed stages as the work progresses.
- You’ll provide evidence (usually via photos, invoices, or site inspections) to confirm completion of each stage.
- The lender then releases the next tranche of funds.
This staged drawdown system keeps your project on track and protects both you and the lender.
What Types of Refurbishment Projects Are Eligible?
These loans cover far more than just a lick of paint. If your works budget is over £5,000 and involves adding tangible value to the property, it’s likely to be fundable.
Eligible refurbishments include:
- Cosmetic upgrades (kitchens, bathrooms, flooring)
- Full redecoration and modernisation
- Rewiring and plumbing
- Roof replacement or damp-proofing
- Structural works, layout reconfiguration, or rear extensions
- Conversion from single dwelling to HMO
- Commercial to residential conversion (semi-commercial properties)
Even if your refurbishment budget is under £50,000, we can still fund your project with no need for a monitoring surveyor — an Asset Manager will be assigned to streamline the process.
Your Exit Strategy Matters
Bridging loans are short-term by nature — typically 6 to 18 months. You’ll need a clear exit strategy before the loan starts. Most clients exit by:
- Selling the property after works are complete (flip strategy)
- Refinancing onto a longer-term mortgage based on the new GDV
As your broker, I can help plan your exit strategy at the application stage — and even line up refinance options before the project finishes, if you want to retain the property long-term.
Why Manchester is Ideal for This Strategy
Manchester continues to be one of the UK’s strongest-performing property markets. With a booming rental sector, growing student population, and demand for quality homes, the opportunity for capital growth and income is massive.
Areas like Levenshulme, Moston, Salford, Eccles, and Gorton are seeing huge demand for refurbished homes — and you don’t need to be a seasoned developer to tap into that demand. You just need the right support.
Why Use a Broker Instead of Going Direct?
As a broker, my job is to represent you, not the lender. That means:
- I match you with the right lender based on your experience, project type, and exit plan.
- I negotiate the best possible rates and terms on your behalf.
- I save you time, money, and hassle during the process.
- I help with the application, valuation, legals, and drawdowns — right to completion.
I work with a panel of over 50 specialist lenders — from challenger banks to boutique funders — and many offer rates and terms you won’t find on the high street.
Let’s Talk
If you’re considering a refurbishment or renovation project in Manchester or anywhere in the UK, let’s have a chat. I’ll help you work out how much you can borrow, what it will cost, and how to structure your loan for maximum impact.
No obligation, no hard sell — just solid advice from someone who’s helped hundreds of first-time developers get started.
For more information contact us for a fees free chat.
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📞 Call us at 07939 091418
📧 Email: john@sunrisecommercial.co.uk
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