How to raise refurbishment finance

If you don't have the right funding in place for a refurbishment project, you can find yourself in trouble

Acquiring derelict buildings and converting or refurbishing them is a significant part of the UK property market. There is still a lot of money to be made from these sorts of properties, because they can be bought for a fraction of the cost of what they will be worth when renovated.

One of the first things to think about when you're undertaking the refurbishment of a property is how you are going to finance it. There are a number of options open to you. You could go to your bank on the high street and get a loan, but this has its drawbacks. Banks won't often lend as much money as you require and you may not be getting the best deal. If you have refurbished property before, you may have profits you can use or savings, but it probably won't be enough to purchase the property and pay for the renovations.

You could try a company which specialises in providing refurbishment finance. There are many advantages to using a specialist agency, not least because this is where their expertise lies. Other reasons to use a specialist provider include:

• Time saving - The worry and bother of finding suitable funding is taken away, as someone else is doing the work on your behalf. You only have to fill out the loan application once and then the broker will distribute it amongst a number of lenders
• Bespoke finance - Your loan and any repayments can often be tailored to the scale and length of your project, rather than your having harsh conditions and time periods to adhere to
• Access to lenders - an independent finance broker has access to a wider range of lenders. This is likely to mean that they will be able to better any offer that a high street bank can make you
• Flexibility - a specialist will be able to lend you the money for a length of term that suits you
• Expertise - A good financial provider will know what each lender looks for in an application and therefore will only send your application to those with the best chance of approving your loan
• Money saving - Refurbishment finance specialists will not usually ask for any money from you as they are paid by the lender

It is sensible to use a specialist finance company because you can raise your refurbishment finance easily without having to dig into your savings and you can also make use of the many other services they offer, such as help with writing business plans.

Abbots Finance is one of the country's fastest growing independent finance arrangers. Find out how we can help you by calling us now on 0870 2401957.

Back to Articles listing