Permitted & Light Development Bridging Loans

Permitted and Light Development Bridging Loans

Flexbile renovation & refurbishment bridging loans

If you have costly renovation or conversion plans in the works, our refurbishment bridging loans can help keep your property plans afloat.

Min. loan amount: £100k
Max. loan amount: £10m for light development finance, £20m for permitted development bridging
Max. LTV: 75%
Interest rate: from 0.99%
Charge type: 1^st and 2^nd charge
Term: 3 – 24 months
Completion time: Funding can be issued in as little as 3 days. Average length around 2 weeks.
Exit fee: POA
Location of property: England, Wales

More product information

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Permitted and Light Development Bridging Loans:

What you need to know

What type of loans are these?How much can I borrow?What can I use refurbishment bridging loans for?What types of property can I use this refurbishment bridging loan for?Advantages Who is eligible?How long does it take to arrange this loan?Additional fees Difference between this and other loans What information do you need to process this loan?How can I apply?

What type of loans are these?

These refurbishment bridging loans will allow you to invest in properties in need of renovation or conversion to potentially boost the property’s value. You can also use the funding to improve a property’s desirability, and then rent out or sell the asset on to generate a potential return.

How much can I borrow?

How much you can borrow will depend on the work you’re carrying out. If you’re planning to convert a property, or move forward with heavy refurbishment plans that require planning permission, you’ll need permitted development finance. This funding can stretch to £20,000,000.

Light development loans are typically used for internal refurbishment works. Examples include installing new kitchens, upgrading bathrooms or general redecoration. We can provide up to £10,000,000 for these kinds of projects.

What can I use refurbishment bridging loans for?

You can utilise our permitted & light development bridging loans wherever refurbishment work is needed. Regardless of whether the work is being done for financial, legislative, or restoration purposes.

The three types of refurbishment are:

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 and 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.

You can also use the funding where your properties need to be upgraded to meet new regulations. Such as the oncoming EPC rules to improve the energy-efficiency of a property. It’s also possible to use the finance to repair wear-and-tear damage from renters. And of course, you’ll also be able to upgrade your property. Potentially raising its value and making it more desirable to buyers and tenants.

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

What types of property can I use this refurbishment bridging loan for?

You can use this funding for a range of property types, spread across residential, commercial, and semi-commercial assets. Furthermore, you’d be eligible for this refurbishment bridging loan, if you purchased your property through an auction and it now needs some upgrading. 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. So long as they’re based in England and Wales, we may be able to help with your refurbishment plans.

If you’re the owner of student accommodation, we could help refurbish the property in time for the next academic year. Or, if you own office space going to waste, we can help you convert it into prime location apartments. We’ll adapt to your plans and support your long-term goals.

Advantages

Our refurbishment bridging loans can provide you with funding in a pinch. If your property is damaged, or needs an upgrade before it can be marketed, our funding can be issued quickly to help you stay profitable.

You could also benefit from our flexibility where unexpected issues emerge. Perhaps you started a conversion project, only to discover major plumbing problems that need sorting first. Or maybe the contractors you were planning to use are no longer in business, leaving you with a looming deadline and limited options.

Refurbishment work may become a necessity for many over the coming years. Especially for landlords. EPC legislation is on the way to keep our property stock green, while buy-to-let investors are facing stricter rules on keeping their properties up to scratch. If you fall behind, fines and even some jail time could be on the horizon.

There may be little leeway in rectifying these issues where they emerge. You may be expected to jump on problems – especially those that are environmental – and fix them asap. Our funding could allow you to do this, and even get you ahead of the game.

We understand how likely these problems are in the property world. We’ll take them into account when assessing your claim.

Who is eligible?

So long as you’re aged between 21 and 85, you’ll likely be eligible for our refurbishment bridging loans. You can come to us as an individual investor, or through a business arrangement. We’re happy to work with self-employed workers, LLPs, SPVs, trusts and more.

We can also work with you if you’re based overseas. We consider applicants from any country, except those that are sanctioned or blacklisted.

How long does it take to arrange this loan?

We can have funding issued in as little as 3 days, so long as everything is accounted for. Typically, we find most of our deals complete in around 2 weeks.

Additional fees

Exit fees are applicable for our permitted & light development bridging loans, with the amounts determined at the point of application. There is an arrangement fee of 1% across all our bridging products.

We have no admin fees, while commitment fees are refunded on drawdown. From the start of your claim, you’ll have a dedicated underwriter, who will keep you up to speed on the costs involved.

Difference between this and other loans

Where our other bridging loans may be used for a property purchase, our permitted & light development bridging loans may primarily be utilised for assets already owned. All claims are assessed on their own merits, which is the same across all of our products.

What information do you need to process this loan?

We’ll need information on what kind of works the refurbishment bridging loan will be used for. We’ll also need to know how far along you are in the process – whether you’re refurbishing, renovating, or converting. As with all our products, your personal information will also be required. Our underwriters will work with you to gather information on your background, finances, and exit strategies.

How can I apply?

You can contact us for your refurbishment bridging loan to get the ball rolling. We can be reached over the phone, through email or via our website. All our details can be found on our contact page.

Contact Us

Get in touch via phone, chat or email about your query, however complex it might be. We will try our best to say yes to you, instead of finding a reason to say no.

Contact our Bridging Loans Team:

Email: info@mfsuk.com

Phone: +44 (0)20 7060 1234

Contact our Business Development Managers:

Email: brokers@mfsuk.com

Phone: +44 (0)20 7060 1234

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Tom Gill, BDM at MFS, has been professional and a pleasure to deal with. Extremely pleasant, helpful, knowledgeable and working with my client best interest at the forefront of every decision to secure the most appropriate solution to fit my client's needs. Tom has a true passion for what he does and, despite the hurdles, we worked together with the support of with Shaun Bains (very nice and professional too!) to get the best outcome for my client. The result was a happy client that is delighted and asked me to do more work for them! Thank you very much indeed Tom and the MFS team. To more deals together! All the best, Eric Giordanengo

Eric Giordanengo

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I would like to thank Sumit for his continuous hard-work and kind assistance on all my deals. Sumit is extremely professional and is willing to go the extra mile to complete a deal. The service provided is excellent. Sumit is attentive and regularly keeps brokers updated during the process and makes sure all deals are completed on time.

Michelle

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Sonal was excellent, from start to finish and I look forward to working with MFS again in the near future

Ryan Gruzinski

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I've had a recent completion, and my first ever with MFS. The way they stuck with the deal with an obstructive vendor was above and beyond the expectations of any lender (I could go on for hours about the vendor) With easily over 300 bridging completions under my belt in my career I know good service when I see it, my only regret is that I should have been using MFS more. Special mention to Jemma Vaja for her hard work.

Liam

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From the first time I spoke to Sonal about the case , I was assured that MFS will be able to help . And yes they did. Sonal sent me terms very quickly and the whole process was seemless. We always got updates and Sonal was very professional and did a brilliant job until the case was finally completed . Our Client was very happy and this meant we were very happy too. We had a fantastic experience and we believe this will be the first of many . To Sonal a big thank you for your wonderful professional yet friendly assistance .

Mr Gabriel

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Bridging Finance that took longer than anticipated to complete (in this instance solicitors ready to go but MSF Compliance had an issue) but all the same the u/w team were on hand to offer assistance. Client feedback is that solicitor fees do add up with MSF cases (especially BTL apps), so make sure you/your client take this into consideration.

Amie-Be Compliant Ltd

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Really good experience from start to finish. Extremely diligent and very efficient way of working. Could not find any faults in the whole procedure. Definitely recommend it to others that are looking for this type of facility. Harj and Kiran we’re very professional at all times even working on a weekend if need to. Once again a big A BIG THANK YOU!!!

JOJAR DHINSA

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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.

Tobi

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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!

Maria

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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.

Sabrina

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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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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

AJIT SINGH

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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.

Ripon Mahmood

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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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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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I have dealt with MFS for 3 years. They have always been professional and found competitive structured finance solutions for my clients. They also offer a wide range of products. They have always got offers out quickly which is paramount to me. I have dealt with several of the team at MFS and they have all given me an excellent service.

customer

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We have completed a complex case. Underwriters were promptly acting in each time.

Dinesh

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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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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

Craig

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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!

Andy Elley

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