Using bridging loans to maximise ROI in property refurbishment.

Refurbishing a property is one of the most effective ways to increase the overall value of a property you own, or improve your rental returns; however, the upfront costs of renovation work can often be a challenge. Traditional funding routes are rarely flexible or reliable enough to keep up with the pace that comes from refurbishment projects, whereas refurbishment bridging loans provide a short-term solution that allows investors to unlock capital and complete work that moves them quickly towards their chosen exit strategy. 

At KSEYE, we can work with you across a wide range of refurbishment projects, such as cosmetic improvements or converting houses to flats, and help you structure finance that maximises your ROI. 

Using tart and turn schemes

For smaller schemes, which are often referred to as tart and turn, using bridging loans can be a useful way of funding light refurbishment works that make your property more appealing to buyers or tenants. Using a tart and turn scheme will usually involve redecorating, upgrading kitchens or bathrooms, or improving energy efficiency with boiler and heating upgrades. 

Regardless of what’s required for your property, the key is speed and efficiency, as the value uplift comes from completing work quickly and bringing the property to market. Using a refurbishment bridging loan allows investors the flexibility to purchase and refurbish without unnecessary delays, which can be the difference between achieving a modest return and securing a stronger margin.

Larger refurbishment schemes

Larger schemes, not including ground-up developments, will also carry significant capital requirements. Projects such as conversions and structural alterations can all add value, but the work often takes longer and requires more substantial funding. Bridging finance allows you to keep your projects moving while retaining control over timescales. At KSEYE, we structure refurbishment loans to support these larger schemes and help investors manage their costs and keep a close eye on their ROI while work is underway.

Development exit and exit strategies

Once refurbishment work is complete, investors need to have a fully prepared exit strategy. For some, the aim is to sell and release profit and move the capital onto their next project, whilst others may prefer to retain the property and benefit from the longer-term rental income. Whatever you choose to do when considering your development and overall exit strategy can provide you with the flexibility to avoid a rushed sale and secure time to arrange longer-term borrowing from traditional lenders, such as a mortgage. By aligning your loan with your chosen exit strategy, you can make the most of the uplift in property value created by the refurbishment and maximise your overall ROI.

If you’re looking to apply for a refurbishment bridging loan to help fund your next project, speak to one of our BDMs (Business Development Managers) today