Bridging finance to refurbish and sell
Buy a property, renovate it and sell it on. A refurbishment bridge funds the purchase and the works, then repays from the sale.
Bridging for a refurbishment and resale
A flip lives or dies on the numbers and the timetable. You buy below the post-works value, renovate, and sell the finished property at the local market price for a margin. Refurbishment bridging finance funds both halves of that, the purchase and the cost of the works, over a short term that matches how long the project realistically takes.
We split refurbishment into light and heavy. Light refurbishment is cosmetic and non-structural: kitchens, bathrooms, decoration, rewiring, new windows, work that needs no planning permission and no change to the building's footprint or use. Light-refurb bridging is the simpler product and can be advanced to a higher day-one loan-to-value, with a typical ceiling around 75% on the right case. Heavy refurbishment involves structural change, extensions or anything touching the layout and use, and is usually funded against build cost in stages, at a lower day-one percentage.
Because interest is normally retained or rolled up rather than serviced monthly, the project carries no payment burden while the works run. The bridge is sized so the gross loan, the retained interest and the fees all sit within the security value, and the whole facility is repaid in one go when the finished property sells.
What we fund
- Light cosmetic refurbishment for resale: kitchens, bathrooms, decoration, rewiring
- Heavy or structural refurbishment, extensions and reconfiguration
- Tired or run-down stock bought below post-works value
- Properties bought at auction that need work before resale
- Adding value through a clear, costed scope of works ahead of a sale
Indicative terms
- Indicative ratefrom around 0.88% per month (Bridging Trends, 2025 average)
- Day-one LTVup to around 75% on light refurbishment (indicative)
- Works fundingheavy refurb usually drawn in stages against cost
- Termcommonly 6 to 12 months to cover works and sale
- Interestusually retained or rolled up; no monthly payments
- Exitsale of the finished property at local market price
Indicative only. Terms vary by lender, security and borrower and are not an offer of finance.
How the finance works
For a light refurbishment we lend against the current value, advancing a day-one net loan up to an indicative ceiling around 75% loan-to-value, and you fund the works yourself or from a modest top-up. For a heavy refurbishment the lender advances a purchase tranche on day one and then releases the works budget in stages against cost, usually with a monitoring surveyor signing off each drawdown. In both cases we model the gross-to-net carefully: the figure you receive on day one is the net loan after retained interest and fees come out of the gross facility. We size the term to the realistic project length plus a buffer for the sale, because the most common reason a flip goes wrong is running out of term before the property sells.
Which lenders back it
Refurbishment bridging is backed by the specialist short-term lenders and refurb-focused desks, many of which distinguish sharply between light and heavy work and price accordingly. The right lender depends on the scope: a light cosmetic refresh suits a high-LTV light-refurb product, while a structural project needs a lender comfortable with staged drawdowns and surveyor sign-off. We are an introducer, not a lender, and after years on the lender side we know which desks are realistic about works budgets and resale values and which will not stretch the term to match the project.
The exit
The exit is the sale of the finished property at its local market price. We evidence it up front with comparable sales for the post-works value, a realistic agent's appraisal and a sale timetable that fits the term. The single most important discipline is honest numbers: a conservative post-works valuation and a build cost with contingency, so the sale clears the bridge with margin rather than scraping it. Where the market softens or the property does not sell as fast as hoped, the fallback is to refinance onto a buy-to-let mortgage and hold the property as a rental, which we keep open as a Plan B from the start.
Finance that suits this
- Refurbishment financeFunds the purchase and the works, light or heavy, ahead of a sale.
- Bridging financeThe underlying short-term facility behind every refurbishment bridge.
Discuss a refurbishment and resale
A view on fundability within one working day.
Frequently asked questions
What is the difference between light and heavy refurbishment?
Light refurbishment is cosmetic and non-structural, such as kitchens, bathrooms and decoration, with no planning permission needed. Heavy refurbishment involves structural change, extensions or reconfiguration and is usually funded in stages against build cost.
How much can I borrow for a flip?
On light refurbishment the day-one loan can reach an indicative ceiling around 75% loan-to-value. Heavy refurbishment is usually funded against cost in stages at a lower day-one percentage. The figures are illustrative, not an offer.
Do I pay interest monthly during the works?
Usually not. Interest is normally retained or rolled up and settled when the property sells, so there is no monthly payment while you renovate.
How long is the term?
Commonly 6 to 12 months, set to cover the works plus a realistic sale period. We always build in a buffer so a slow sale does not push you past the end of the term.
What if the property does not sell?
The fallback is to refinance onto a buy-to-let mortgage and hold the property as a rental, repaying the bridge from the new facility. We keep that option open from the outset.
How are the works paid for?
On a light refurb you typically fund the works from the day-one advance or your own funds. On a heavy refurb the lender releases the budget in stages against cost, with a surveyor signing off each drawdown.
What does it cost?
An arrangement fee, valuation, legal costs, any monitoring surveyor fees on staged works, and interest at an indicative rate from around 0.88% per month on the 2025 average. We provide the gross-to-net figures before you commit.
Planning a refurbishment and resale?
Tell us about the property and the exit and we will come back with a view on fundability and likely terms.