Not every refurbishment project is the same, and lenders don't treat them as if they are. A new kitchen and a lick of paint is a very different proposition to knocking down an internal wall or replacing a roof, both in terms of risk and in terms of how the loan needs to be structured. Understanding which category your project falls into, light or heavy refurbishment, will shape which product you're offered and at what rate. Getting this right from the outset also avoids delays later, since misclassifying a project is one of the more common reasons a case needs re-underwriting partway through.
What counts as light refurbishment
Light refurbishment generally covers cosmetic and non-structural work: new kitchens and bathrooms, redecoration, new flooring, rewiring, replumbing, and similar improvements that don't require planning permission or building regulations sign-off. The property remains structurally unchanged throughout, and is usually still habitable, or close to it, during the works. This is the most common type of refurbishment we see, particularly on ex-rental properties or older homes bought to modernise.
What counts as heavy refurbishment
Heavy refurbishment covers structural work: extensions, loft conversions, removing load-bearing walls, underpinning, roof replacement, or any project requiring planning permission or building control sign-off. These projects typically take longer, carry more construction risk, and often leave the property uninhabitable at some stage during the works, all of which change how a lender assesses the case.
Why the distinction matters to a lender
Heavier work carries more risk of cost overruns, delays, and the property being worth less than expected if the works aren't finished to a good standard. A lender needs to factor in the possibility that the project takes longer than planned, or that the finished value doesn't come in as high as hoped. This is reflected in slightly different rates, and sometimes in how funds are released, with larger heavy refurbishment projects occasionally released in stages rather than as a single lump sum.
How it affects your rate and loan-to-value
Light refurbishment bridging is typically priced closer to standard bridging rates, since the risk profile is similar. Heavy refurbishment, and particularly ground-up development-adjacent work, is usually assessed against the gross development value, meaning the expected value once the work is finished, rather than the current as-is value, which can actually work in your favour if the uplift in value is significant. That said, the maximum loan-to-value is generally applied more conservatively on heavier projects, given the greater uncertainty involved.
What lenders want to see for each
For light refurbishment, a lender will typically want a simple schedule of works and a rough budget, along with confirmation the works don't require planning permission. For heavy refurbishment, expect to be asked for more detail: planning permission documents where relevant, a detailed schedule of works, a realistic budget with some contingency built in, and evidence of who will be carrying out the work, whether that's a main contractor or a series of separate trades.
Choosing the right term
It's worth being realistic, and if anything slightly conservative, about how long your project will actually take. Light refurbishment projects often complete within three to six months. Heavy refurbishment, particularly anything involving planning permission or structural work, regularly takes longer than initially planned, whether due to material availability, contractor scheduling, or simply the nature of construction work. Building in a buffer on your loan term avoids the stress, and cost, of needing to extend partway through.
Mixed projects that fall between the two
Many real projects sit somewhere between the two categories, combining cosmetic updates with a single structural change, such as removing one non-load-bearing wall to open up a kitchen-diner. These are usually assessed on their specific details rather than forced into one tier or the other, which is why it's worth describing your project as precisely as possible when you first get in touch, rather than trying to guess which category it fits.
Staged drawdowns on larger projects
On bigger heavy refurbishment projects, funds are sometimes released in stages rather than all at once, tied to specific milestones such as completion of the roof or first fix electrics. This protects both sides: you're not paying interest on money that hasn't been used yet, and the lender can check progress against the schedule of works before releasing the next tranche.
Which one applies to your project
If you're not sure which tier your project falls into, a good rule of thumb is: if it needs planning permission, building regulations sign-off, or touches the structure of the building, it's heavy. If it's cosmetic and the property stays broadly usable throughout, it's light.
If you're planning a refurbishment project and want to know which product and rate would apply, get in touch with the details of your works and we'll talk you through the options, or use the calculator on our home page for an indicative cost based on your loan amount and term.