PDR / C2R / Heavy Refurbishments

Property Conversions

Even if a property needs major structural changes, if the property shell remains, conversion finance can be obtained.

Conversion projects are deemed less risky when comparing against a ground up development. Dependent on the size, there are even bridging type lenders that can support as a heavy refurbishment. When assessing the project, the key is to assess the proposed value to be added to the existing property. They are structured in the same way as a ground up development, in stage payments as the property value increases.


A popular strategy being used currently given the market conditions is ‘commercial to residential’ conversions. For example, properties previously used for a commercial nature such as offices, pub, hotels, sui generis, being converted into residential use. 

Another popular strategy being used by developers and investors is the ‘refurb bridge’. This is for conversions classified as either ‘light’ or ‘heavy’. Light being where there is no structural work being undertaken and heavy being where there is structural works required. * Structural works include moving of load bearing walls, extensions, loft conversions, basement etc


Permitted development opportunities

Commercial to residential conversions

Residential properties converted into HMOs

Light refurbishment bridge

Heavy refurbishment bridge

Case Study

Under the new permitted development rights, this developer was seeking a senior debt facility at 60% LTGDV to support the conversion project of a commercial property into residential apartments. The developer wanted to deploy his own funds into the project, therefore was seeking the lowest cost of funds opposed to debt leverage.


Loan Amount

Loan Type
Senior Debt

Asset Class

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