What Can a Light Refurbishment Loan Be Used for?
Light refurbishment typically refers to activities which cost less than 15% of the property’s total value and usually involves cosmetic or required safety updates, such as:
- Redecoration, such as plastering, painting, or laying flooring.
- Replacing fixtures and fittings, including a new kitchen or bathroom.
- New windows, doors, or outside rendering.
- Rewiring or replumbing.
Most commonly, a light refurbishment mortgage or loan is used to purchase a rental property in need of repair at low cost and improve it, so it meets letting standards. Transforming properties into HMOs is also commonplace with this kind of finance.
Due to the nature of the work being carried out, the terms on these loans are short – the typical term is just 6 months long.
