Permitted & Light Development Bridging Loans

Permitted and Light Development Bridging Loans

Designed to be fast and flexible.

We can provide fast finance for your property refurbishment because when it comes to renovating a property – getting works underway quickly is important.

Permitted and light development bridging loans allow homebuyers, property investors and landlords to invest in properties in need of refurbishment and then carry out the required work. They help utilise and unlock potential property equity by either fully converting, or simply refurbishing a property, before renting or selling the asset.

Refurbishment projects are popular in the UK for two key reasons:

They hold the potential to add tens of thousands of pounds to the overall property value
Refurbished properties can provide increased rental income from buy-to-let and Houses in Multiple Occupation tenants

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Permitted and Light Development Bridging Loans:

What you need to know

Why do borrowers require home improvement loans?What’s the difference between light and permitted development bridging loans?What kinds of property can I use a property refurbishment loan on?What are the three different types of refurbishment?Are there regulations I need to adhere to when using a refurbishment bridging loan?How do I know if property refurbishment projects are right for me?

Some borrowers who are landlords or property investors may require home improvement loans to meet government regulations or meet tenant expectations. This could be:

To meet new property regulations (this will depend on your local council)
Meet EPC regulations for buy-to-let assets
Replenish wear-and-tear damage from renters

A home improvement loan could also help you utilise your current properties by unlocking potential property equity. You could do this by either converting a room or the overall function of a property, or simply refurbishing a buy-to-let property, before renting or selling the asset.
These forms of bridging loans allow you to purchase a property, then extend and/or renovate both the interior and exterior. Meaning, you can produce the best version of your property to receive the maximum income in the form of rental income or via the sale of the property. Whether it is for your main residence or an asset in your property portfolio, our permitted & light development product can be a great way to gather funds quickly so that work can start.

Light development finance:

Light development finance is also known as a refurbishment loan. This product aims to improve the interior aspects of your property. The work often relates to installing a new kitchen or bathroom. It is usually for property renovation and general redecorating.

Permitted development finance:

Permitted development finance is also known as conversion finance. These works often relate to heavy refurbishment. Whether you’re looking for:

Barn or loft conversion finance
Funds for converting residential to commercial property or vice versa
Loan for home improvement in the form on an extension

Commercial properties:

You can use a refurbishment loan for commercial or residential investment properties. Popular conversion examples include converting a barn into a luxury house or an office block into flats.

Residential property:

Updating a property from your portfolio is a great way to potentially increase property value or attract new buyers and tenants willing to pay premium prices for premium properties.

Auctioned assets:

There are often cheaper assets available at auction that need renovation or refurbishment works. You can use a refurbishment loan to do the work quickly, and then sell the property on.

Converting buy-to-lets:

We also provide Houses in Multiple Occupation (HMO) conversion loans. This allows landlords to potentially increase their monthly yield by converting their current buy-to-let property into a house of multiple occupancy.

Converting

A conversion is a project that changes the use or function of a particular building or room. Popular spaces to convert within the home include:

Bedrooms
Basements
Lofts
Garages

Refurbishing

Refurbishment has the potential to enrich the overall value and quality of the property. It usually relates to actions such as installing new bathrooms, kitchens, or general redecorating.

Redecorating properties is a regular task performed by landlords, particularly those with Houses in Multiple Occupation. This style of property usually requires constant maintenance, as they suffer high volumes of wear and tear from a constant stream of tenants. It falls to the landlord to uphold and maintain the correct conditions for these properties.

Renovating

Renovation is the process of improving or modernising an old or damaged building. These types of projects are generally popular with auction buyers who are looking to ‘flip’ properties.

Regulations for permitted development finance will vary depending on the lender you are using. Typically, each unregulated lender will have their own policies that will apply to their loan.

Do building regulations apply?

Building regulations will not apply when using a light development bridging loan.

However, permitted development projects that include heavy works may require planning permission. These often relate to projects such as a loft or bedroom conversion or adding an extension.

You will need to make sure you check with your local council for any restrictions or minimum requirements – such as roof height for a loft conversion – that apply to your area. You will need to check this even if you do not require planning permission. It can also change depending on your location and council.

As we do not supply a development finance for ground up development loans, this means we can only supply a bridging loan once planning permission is granted, or if none is necessary.

When converting a property, there are a couple of key factors that you should consider:

1) Plan

This should include a clear understanding of what changes are needed and how best to utilise the time needed for each individual section of work. Taking note of works that can happen at the same time could save you both time and money.

2) Time

Works can take anywhere from a couple of weeks to several months, to years. Primarily, your time scale will depend on the size of the project and the types of work you will be conducting. If you’re looking to complete within a specific timeline, then arranging a time schedule with your builder to keep things on track could be incredibly helpful for both time management and budgeting.

3) Money

Whilst budgets create a solid outline, construction works are notorious for running over schedule for a variety of reasons. Including the temperamental British weather, material delays or shortage of builders. All of these could result in additional costs. Arranging refurbishment finance can be a great option for property investments in need of additional capital to finish refurbishment works. Alternatively, you could use development exit finance, if you decide to use development finance.

Contact us

Speak to us on the phone, via chat or email about your case, however complex it might be. We have a friendly, dediciated team and one of our underwriters will be happy to help you with your query. We will try our best to say yes to you, instead of finding a reason to say no.

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Thank you Olivia and Imogen for helping us assist with the completion of two Buy To Let Mortgages. On to the next one! Kind Regards, Aakash

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Really excited to be working with MFS. Underwriter was busy throughout the application and it was difficult to get her on the phone, however our BDM Oli Watts was available throughout the process and that made it more efficient for us. If we were unable to get an update form UW Oli would get the info for us regularly.

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MFS, Thank you for giving all my clients an amazing service, Jemma, especially, she has been very professional and efficient since she joined MFS. She is a definitely a great asset to the company. Jemma, thank you and well done for all your assistance!

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Outstanding work on an urgent completion with a previous broker and lender failing to deliver. The team at MFS including Jeanne, Olivia, Kieron and others stepped up and ensured the client completed and avoided losing their deposit on a time sensitive matter. Nice work and onto the next few.

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Working with MFS is an absolute pleasure. They are always in communication and so everything they can to deliver a seamless transaction within a short time and minimum fuss. All in all a very professional outfit. Working with Jemima Hyes and her team has been great.

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Exceptional service from a professional, diligent and creative team. In particular - a special thanks to Sonal who effortlessly simplified the complexity of the matter, maintained clear lines of communication and ensured overall transactional efficiency.

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Very tricky case, handled expertly by Jemma and the team, even though interest rates increased in the middle of the application, MFS ensured that any increase was as minimal as possible. Top effort and will be using MFS again

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As a mortgage broker, I have dealt with MFS several times and all successfully progress to completion on time. I have to mention that the BDM Zahira and the Underwriter Jeanne have been working really hard to make sure my urgent deals completed within the deadline and updated me several times a day so I am always aware whats going on. Top services.

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Very Satisfied with their service so far.

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Five Star Service Another bride company let me down with an unreasonable underwriter view, which cost my client two weeks, a valuation, and solicitor fees. My client needs to close the deal within three weeks. MFS has given me hope and taken the human thinking approach to overcome all the obstacles. Craig, Wayne, and Will provided excellent support (all calls were answered the same day). A big thanks go out to them. The whole team deserves five stars. Easy Financial Services LTD

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I've had the pleasure of dealing with MFS in particular Imogen and Kieron. On each occassion from the initial phone call to discuss the nature of the case and sending across the enquiry form they have been proactive and quick to get the indicative terms issued. They are knowledgable and very helpful.

Amit Patel, Trinity Finance

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I have dealt with MFS for a long time as a Commercial Financial Broker. A great company to deal for all your short term funding needs. The speed, professionalism, communication and friendliness of staff are just great. I have dealt recently with Jemma who is always ready to help and sort out hurdles. Kieron and Richard are a few who i have dealt who brilliant. Also Paresh who is the CEO of MFS is a great person to deal. MFS always exceed expectations.

Victor

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Quality service and staff always willing to find solutions.

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We've had nothing but great service from Zahira and Kieron whilst working with MFS. It's a pleasure to work with a common sense lender who are efficient, dedicated, commercially minded and easy to communicate with. Thank you, and keep up the good work!

Chris Oatway

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First time I had introduced a client to MFS. MFS offer a freindly and efficient service, they are very competative and I will defenitley use them again. My client is very happy I introduced MFS to them.

John

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I have known Kieron and MFS for circa 4 years. Nothing is ever too much of a problem for Kieron and he is very quick to respond to my enquiries. A few months ago we completed two very tricky transactions in excess of a million pounds of Bridging and Kieron sorted out every question and query that we came across. Kieron’s ability to quickly refer up the line was also extremely helpful and he has access to the decision makers who without doubt have a 'can-do' attitude! I run a team of 5 Commercial brokers and I have recommended MFS to them on a number of occasions, so expect a plentiful supply of new business! Thank you to all at MFS, you are a great bunch!

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Excellent experience once again with Sonal - quick response and follow up and clear instructions as to the required details and likely timing - all very straightforward

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