Property Refurbishments: Light vs Heavy Works Explained

Refurbishing a property is one of the most effective ways to increase its value, improve rental yield, or make it mortgageable – especially in today’s competitive property market. But not all refurbishments are created equal. The difference between light and heavy works can dramatically affect the type of finance you need, the timeline, and even the lenders willing to work with you.

So, let’s break down the key differences between light and heavy refurbishments and explain how to secure the right funding to match your project.

Light vs Heavy Refurbishments: What’s the Difference?

Light Refurbishment

Also known as a cosmetic renovation, light refurbishments are usually non-structural and aimed at improving the property’s appearance or bringing it up to a liveable standard.

Examples:

• Painting and decorating
• Replacing kitchens or bathrooms
• Flooring and tiling
• Upgrading fixtures and fittings
• Minor non-structural repairs

Timeframe: Typically completed within a few weeks

Risk Level: Lower

Planning Permission: Rarely required

Suitable For: Properties already in liveable condition

Heavy Refurbishment

Heavy refurbishments are more extensive and often involve structural changes, building regulations, or planning permissions.

Examples:

• Extensions or loft conversions
• Reconfiguring layouts (e.g. moving walls)
• Structural repairs (e.g. subsidence or damp)
• Converting single-family homes into HMOs
• Replacing roofs or rewiring plumbing and electrics

Timeframe: Several months, depending on complexity

Risk Level: Higher

Planning Permission: Often required

Suitable For: Properties deemed uninhabitable or needing major improvement

Why the Difference Matters

Lenders categorise refurbishments as light or heavy to determine:

• The type of finance they’ll offer
• The amount of funding available
• Whether they’ll lend against the current value or end value (GDV)
• How the funds are released (in full or in stages)

Knowing which category your project falls into ensures you’re applying for the right finance – and not facing delays or rejections.

Finance Options for Property Refurbishments

1. Refurbishment Bridging Loans

These short-term loans are tailored specifically for renovation projects, with funding available for both purchase and works.

For Light Refurbs:

• Loan based on current property value
• Funds may be released in a single drawdown
• Shorter terms (typically 6–12 months)
• Quick turnaround for resale or refinance

For Heavy Refurbs:

• Loan based on GDV (Gross Development Value)
• Funds often released in stages, tied to project milestones
• May require planning documents and a detailed schedule of works
• Ideal for value-add investors and developers

2. Development Finance (For Large-Scale Projects)

If your renovation borders on structural development or involves converting a property entirely (e.g. turning a pub into flats), development finance may be more appropriate.

• Suited to high-cost, multi-phase projects
• Based on both land/property value and build costs
• Often includes professional monitoring and QS reports
• Can cover 100% of build costs, depending on experience and exit strategy

3. Second Charge Loans (For Raising Capital)

Already own a property with equity? A second charge loan can release funds to cover your refurbishment works — without disturbing your existing mortgage.

🔗 Learn about second charge finance

Top Tips for Financing Your Refurbishment Project

Be clear on your exit strategy – Are you selling, letting, or refinancing after works?

Have your documents ready — Including schedules of works, quotes, and planning approvals if needed.

Don’t underestimate costs – Build in a contingency of at least 10–15% for unexpected expenses.

Work with a specialist broker – Not all lenders cater to heavy refurb projects, especially if planning permission is involved.

How Pure Property Finance Can Help

At Pure Property Finance, we specialise in sourcing bespoke funding solutions for property investors and developers – whether you’re giving a flat a fresh lick of paint or turning a derelict building into an HMO.

We can help you:

• Access up to 100% of refurbishment costs (in some cases)
• Structure finance around your project’s unique needs
• Choose the right lender based on the level of works and your experience
• Navigate planning, valuations, and drawdowns with ease

Get in touch with our specialist team today, on 20920 766 565 or [email protected] to discuss your project.