01
A refurbishment bridge for the works
Funds insulation, heating, glazing and whatever else the assessment requires, secured on the property despite its current unlettable status.
Buy-to-let
“My rental property fails the EPC rules and I cannot let it”
A property that fails minimum energy efficiency standards cannot legally be let on a new tenancy, which removes the rental income that a buy-to-let mortgage depends on. A refurbishment bridge can fund the upgrade works, with a buy-to-let refinance once the rating is improved and the property is let.
An illustrative situation, not a client case study. It describes the kind of enquiry this market sees. Any figures are examples, not a quotation, and no credit check or lender decision is involved in reading this.
Sound familiar?
- Your EPC rating is below the minimum required to let
- A tenancy is ending and you cannot legally re-let
- The upgrade works cost more than you can fund from income
- Your existing lender will not advance further funds
The situation
Minimum energy efficiency standards have already removed the worst-performing properties from the lettable market, and the direction of travel has been towards tighter requirements. For landlords with older stock, this turns a performing asset into a non-performing one overnight.
The financing problem is circular in the familiar way: the property cannot be let, so it produces no income, so a buy-to-let lender has nothing to assess, so the upgrade cannot be funded from borrowing against it.
Why the usual lenders say no
- Buy-to-let lending is assessed on rental income, and a property that cannot be let has none.
- Further advances are usually refused where the property does not meet current letting standards.
- Remortgaging is difficult for the same reason.
What usually works
02
Getting a proper improvement report first
An EPC assessor can tell you which measures move the rating most per pound spent. Some of the cheapest measures have a disproportionate effect.
03
Checking available grants and schemes
Government and local schemes for energy efficiency come and go. Check what is currently available before borrowing the whole amount.
04
Refinancing once let
With the rating improved and a tenant in place, a standard buy-to-let mortgage repays the bridge, often at a better rate given the improved property.
Roughly how the numbers look
| Day one advance | Sized against current value |
| Works funding | Often released in stages against progress |
| Term | Commonly 9 to 12 months — works, letting and refinance |
| Exit | Buy-to-let mortgage once let at the improved rating |
Minimum energy efficiency requirements and any available exemptions change over time. Check the current rules for your property before planning works. These are examples to show the shape of a deal, not a quotation. Work out your own figures in the bridging calculator.
What we would need from you
- The current EPC and the assessor’s recommendation report
- A costed schedule of the improvement works
- Details of the property and any existing mortgage
- A rental appraisal for the property once improved
- Your exit: a buy-to-let lender’s criteria
- Details of any exemption you have registered
Things that catch people out
- Some measures need building regulations approval or planning consent, particularly external insulation on period property.
- Exemptions exist but are limited, time-bound and must be registered properly.
- Improving the rating usually improves the property’s value and rent too. Factor that into whether the works are worth more than the minimum.
Questions we get asked
Can I get finance on a property I am not allowed to let?
Not a standard buy-to-let mortgage, because there is no rental income to assess. A refurbishment bridge can fund the upgrade works, and a buy-to-let mortgage follows once the property is compliant and let.
Which improvements make the most difference?
It varies by property, but insulation and heating controls are frequently the most cost-effective. Ask the EPC assessor for a recommendation report rather than guessing.
Are there grants available?
Government and local authority schemes for energy efficiency exist and change periodically. Check what is currently available for your property type and area before borrowing the full amount.
The product that usually fits
See how it worksEvery case is different. A specialist will confirm what actually fits yours.
Keep reading
Related situations and guides
“I am buying my first rental property and do not know where to start”
You have the deposit and have found a property, but the process is unfamiliar.
Read the scenario“I want to buy, refurbish and refinance but I do not know how the funding works”
You understand the strategy on paper but not where the money comes from at each stage.
Read the scenarioBridging vs development finance: which do you need?
The real dividing line between a bridge and a development facility, how each is drawn down and priced, and which one your scheme needs.
Read the guideAll situations
Eighteen situations across bridging, development, commercial and buy-to-let.
Browse them allAmram Finance Ltd is a credit broker, not a lender. We do not lend our own money and we do not approve or issue loan offers.
Your property may be repossessed if you do not keep up repayments on a loan secured on it. Some forms of bridging finance and buy-to-let lending are not regulated by the Financial Conduct Authority.