Finance: Should I refurbish a property before sale?
This is no small problem. Often a poorly maintained property needs a large amount of work. Many choose to sell right away and save the hassle of doing anything. However, if you want to maximise the amount you can make from the property, you should consider the options.
Because with refurbishment you can get more viewers, you can create a new asset, and you can make more money from an eventual sale. Let us explain.
Reasons for refurbishment
Increase viewer interest
The property experts have interesting things to say about refurbishment and its impact on viewings.
Mark Alexander, a Norwich property developer, said: "Most people are put off buying [poorly decorated properties] as they don’t look pretty and people often lack vision. Refurbishing a property isn’t most people's ambition in life and most people want to buy a property to live in."
Refurbishment can bring more viewers, making it easier to sell a property. But do you always need to sell?
Increase your assets
The Telegraph has reported that landlords are buying poorly maintained properties to refurbish and let. Often this option is not covered by a traditional mortgage, as sometimes the properties are seen as unmortgageable. Yet for some landlords it has turned weak properties into strong assets.
The report cites Hazel Clarke, a landlord with 23 properties. She estimates a development of this kind should bring her £90 per week per room. And with four rooms that makes a total of £1,440 per month.
So as you can see, if you do not necessarily need to sell, there is a demand you can tap into.
Increase value of sale
If you are set on a sale, refurbishment helps in this matter too.
Lea Beven, property developer in Limecastle, managed to increase the value of a property with only a small amount spent on refurbishment.
She had a small property valued at £140,000. She hired a skip, bought some paint, and brought a team to undertake such household repairs as fixing the bath panels. Overall these refurbishments cost her £2000.
But the revaluation of the property made the cost worthwhile. The property was now worth £180,000 – meaning she would see a profit of £38,000.
If you want to achieve a similar level of results with your own refurbishment, how would you get started?
Fast property refurbishment finance
You can get the funding quickly with an Affirmative bridging loan. Borrow between £10,000 and £2 million. The loan is secured against an existing property and / or a property being purchased as a first or second charge. Your loan can be ready in a matter of hours. Our record is four hours (start to finish), and we are competitive.
Call our Manchester office today on 08000 44 84 84 for more information.