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Refurbishment Finance
Definition
Funding specifically designed for property refurbishment projects, often with drawdown facilities to release funds as work progresses.
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Related FAQs
A refurbishment HMO mortgage covers both the purchase and renovation costs of a property before it can be used as an HMO.
Was this helpful?Covered works typically include structural repairs, room conversions, and HMO-specific safety upgrades.
Was this helpful?Funds are usually released in stages as renovation milestones are reached and approved by the lender's surveyor.
Was this helpful?Refurbishment HMO mortgage rates typically range from 5.5% to 8.5%, higher than standard HMO mortgages due to increased risk during the renovation period.
Was this helpful?Most lenders require a minimum 25-30% deposit for refurbishment HMO mortgages, though some may accept 20% for experienced landlords with strong renovation plans.
Was this helpful?Your lender will arrange a surveyor to assess the property and renovation works. You may also want an independent survey for peace of mind.
Was this helpful?Criteria include renovation experience, strong financial position, detailed renovation plans, realistic cost estimates, and compliance with building regulations.
Was this helpful?Refurbishment HMO mortgage applications typically take 6-10 weeks due to additional complexity, renovation plan reviews, and potentially multiple property inspections.
Was this helpful?You'll need proof of income, bank statements, property details, detailed renovation plans, cost estimates, builder quotes, and potentially planning permission.
Was this helpful?Some lenders may include planning permission costs in the refurbishment loan, but this varies by lender. You may need to cover these costs separately.
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