Here at Mortgages for Business, development and refurbishment finance loans of under £500,000 are just as important to us as the larger loan projects! Our expert team is well equipped to source the finance you need to make your plans a reality.
Development Projects under £500,000
For development loans of this size, you’re probably considering a single property build (either residential or commercial), a change of use development (e.g. commercial to residential units, a house into HMO), residential and commercial property extensions, or refurbishment works.
Our expert team deal with all types of projects so will be able to discuss your proposal and advise whether there are lenders that would back it.
Refurbishment Finance
If your loan requirements are below the £250,000 mark, then refurbishment finance will likely be a more suitable option for you.
Types of refurbishment
For lenders, there are two kinds of property refurbishment:
Light refurbishment
Light refurbishment is where no planning permission/building regulations are required and where there is no real change to the overall use/nature of the premises. Common light refurbishments would include new bathrooms, new kitchens, redecoration, rewiring, new windows etc.
Typically, refurbishment finance for standard buy to let houses and flats is available up to 75% of the end value with rates starting from around 6%. There are also finance options for more complex properties, including HMOs and multi-unit freehold blocks of flats and finance for applications made through limited companies or first-time investors. As you would expect, the more complex the proposition, the higher the rate you can expect to pay.
Heavy refurbishment
Heavy refurbishment is where there are structural changes to the property, and planning permission/building regulations are required.
How much can I borrow?
Ultimately, your circumstances determine the size of the development loan you can take. Unlike standard mortgages, development finance loans are bespoke financial solutions unique to you and your project.
To get an accurate idea of how much you can borrow, get in touch with our experienced team today.
To give your project the best chance, call us today
Call 0345 345 6788
NB: ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
