Refurbishment Loans With Blue Square Capital

At Blue Square Capital, we have over 30 years of experience working with investors in the property sector to give them the capital they need.

We know that when it comes to refurbishing buildings, our clients are looking for flexible funding that they can borrow at speed.

Our team work quickly, providing indicative terms within 24 hours. If approved, we aim to get the funds with you within 2 weeks, so you can start your refurbishment project as soon as you need to.

Blue Square Capital offers loans ranging from £250,000 to £2 million, so you can unlock the capital you need for your renovation project.

This is reviewed on a case-by-case basis, but is calculated at an LTV of up to 70%.

What this means is that we will loan up to 70% of the property’s value at the time that the loan is taken out.

We also offer a 15 month repayment window, allowing you to refurbish your property with plenty of time to refinance if needed.

If you have found a property you would like to refurbish, get in touch with us today to find out if you are eligible for a loan.

A refurbishment loan is designed specifically for property refurbishment projects. These include:

• Cosmetic upgrades such as repainting walls, ceilings, and other surfaces to refresh the property. Replacing or repairing flooring materials like hardwood, carpet, tile, or laminate. Installing new lighting fixtures, faucets, or cabinet hardware.

• Structural repairs such as fixing or replacing a damaged or worn-out roof, repairing the structural foundation of the property, fixing cracks, leaks, or water damage in walls or ceilings.

• Home extensions such as adding extra bedrooms, bathrooms, or a home office.

• Insulation such as installing or upgrading insulation, installing solar energy systems and replacing old windows and doors with more energy-efficient options.

• Plumbing upgrades such as replacing old pipes, updating bathrooms or kitchens, and fixing leaks.

• Fire or water damage repairs such as renovating areas of the property that have been damaged by fire, floods, or storms.

• Pest damage repairs such as fixing damage caused by termites, rodents, or other pests.

Refurbishment loans can be used to renovate a number of buildings, including:

• Single-family homes
• Multi-family homes
• Flats
• Apartment blocks
• Buy to let rentals
• Holiday rentals
• Retail spaces
• Offices
• Hotels
• Restaurants
• Mixed-use properties
• Damaged buildings
• Heritage properties
• Listed buildings
• Warehouses

When it comes to eligibility, we assess loan requests on a case by case basis.

Before we approve the loan, we will want to know everything, from the value of the property you are renovating, to the cost of materials and most importantly, your exit strategy.

Whilst we do run credit checks on our borrowers, we are more interested in hearing their plans for the project, and how they plan to repay the loan within the 15 month window.

On application, we usually ask for

• Valuation documents
• Planning permission
• Company bank statements
• Details of exit strategy

Then, our team will work to give you indicative turns within 24 hours.

If your application is approved, the legal process begins, and we aim to get the funds with you within 2 weeks.

There are some additional costs you will need to pay for the refurbishment loan.

Aside from the interest rate, which starts at 0.95%, Blue Square Capital also charge the below:

• Arrangement fees (2% of loan amount)
• Bank transfer fee (£25)
• Admin fee (£999)
• Valuation and survey fees (depends on property)
• Solicitor fees (depends on project)
• Exit fees (n/a)

Unlike other lenders, we don’t charge early exit fees, so if you complete your project early, you won’t be penalised.

Absolutely, our team aim to respond within 24 hours but there are a few things to do to ensure your loan gets approved quickly.

Such as:

Have all documents ready

Firstly, make sure all documents are collected and complete. Missing documents are one of the most common reasons for a delay or dismissed loan application.

Lenders will want to see documents like proof of identity, business accounts, credit history and asset valuations.

If these documents aren’t ready or accurate, you could find that your loan doesn’t get approved. Having everything ready at the start is important.

Clear exit strategy

A clear and well thought through exit strategy will help us see that you can repay the loan in the timeframe needed.

If you show us a solid exit strategy, you’re much more likely to get approved.

Choose the right lender

Choose a lender that is known for speed and efficiency, like Blue Square Capital. We pride ourselves on being responsive, flexible and focused on delivering quick results for our clients.

See our guide here with more details on how to speed up the loan application process. 

How Long Do I Have To Complete The Refurbishment?

Our loans are issued with 15 month repayment plans, meaning you need to pay them back in full within this time.

If you think you are running behind, it might be best to refinance under new terms to avoid any penalties.

What Happens If The Refurbishment Costs More Than Expected?

If the refurbishment costs more than expected, then you may need to pay the extra out of pocket. During the application process, we will work with you to ensure the agreed loan amount covers all costs – so try and be prepared upfront to avoid any financial surprises.

What Happens If I Sell The Property Before The Renovations Are Complete?

If you sell your property before the renovations are done, you will need to repay the full loan amount upon closing. As Blue Square Capital don’t charge early exit fees, you won’t be penalised for doing this.

However, the sale must occur within the repayment window and the debt must be cleared to avoid any financial penalties.

Can I Combine A Renovation Loan With Other Financing Options?

Yes, some borrowers combine renovation loans with other types of financing. These can be personal loans, credit cards, or private investment to cover extra costs.

However, it’s important to make sure you can manage multiple loans and stick closely to their repayment terms.

Can I Get The Funds Quicker Than 2 Weeks?

The speed of the process is largely determined by 2 factors: firstly, how prepared the borrower is, and secondly, how long the legal process takes.

Application processes tend to be quicker when all the documents are in order. This allows us to make quick decisions and start the legal process earlier.

Whilst we don’t make any promises, we will do our best to meet your loan deadline and ensure you have the funds when you need them.