Buy, refurbish, refinance — underwritten before you buy
BRR only works if the post-works valuation is real. Most disappointing BRR deals were fine on paper and failed at the surveyor's desk, leaving cash stuck in a property that still has to be let and managed.
Buy, refurbish, refinance means buying below market value, improving the property, then refinancing on the higher valuation to recover most of the capital and hold the asset. The deal is judged on money left in after refinance, not on the discount at purchase. That requires an evidenced end valuation, a costed schedule of works with contingency, a lender who will lend on the improved value after the six-month rule, and a rent that covers the new debt at stress rates.
End valuation
Evidenced by real comparables, not by the refurb spend.
Costed works
A priced schedule with contingency, not a per-square-foot guess.
Refinance rule
Most lenders want six months' ownership before the new valuation.
Money left in
The only number that decides whether the deal was worth doing.
Services in this area
Research behind this work
Comparisons and explainers our team keeps current, for anyone still deciding who to work with.
- HMO property conversion servicesConversion costs, planning class and what lenders accept.Read the guide →
- investment property sourcing agentsSourcing agents judged on underwriting, not on deal volume.Read the guide →
- buy-to-let property sourcing companiesBuy-to-let sourcing firms and the yields they quote.Read the guide →
Buy refurbish refinance sourcing: common questions
How long before you can refinance after a refurbishment?
Most lenders apply a six-month ownership rule before they will lend against an improved valuation, though a minority will consider earlier where the works are documented. Model the deal on six months and treat anything faster as upside.
Does BRR still work in London?
It works where the gap between tired stock and finished comparables is wide enough to cover the works, the finance and the stamp duty. In much of prime London it is not, which is why the commuter belt and towns like Luton appear more often in genuine BRR numbers.
What is a realistic amount of money left in?
Pulling everything back out is the exception, not the plan. A deal that leaves fifteen to twenty-five per cent of the capital in, on an asset that cash-flows at stressed rates, is a normal good outcome.
Tell us the situation
Asset type, lot size and timeline is enough to start. We will say on the first call whether we are the right fit — including when we are not.