Light Refurbishment

As the affordability of a buy to let mortgage is usually based on the rental income the property will generate, the vast majority of lenders require the property to be in a rentable condition at the time of purchase.

However, if the property that you are buying is a little run down and not in a rentable condition, a light refurbishment product may be the answer. The mortgage would be based on the value of the property as it stands but the lender would ask the surveyor to estimate what the potential rental income would be following a programme of refurbishment. As long as the proposed works are cosmetic rather than structural, the lender may be able to use the post works rental figure. Once the work has been completed, the property is re-inspected and if there has been an uplift in value the lender may allow you to release additional funds.