Using Refurbishment Finance to Add Real Value to Property Portfolios

For many property investors, the focus is shifting. Rather than expanding portfolios at pace, attention is turning to improving what’s already owned. For specialist finance brokers, this creates a clear opportunity to add value by introducing refurbishment finance as part of a wider portfolio strategy.

Refurbishment loans can be a highly effective way for clients to enhance both capital value and rental yield. From light upgrades to more involved works, targeted investment can significantly improve performance across underperforming assets.

We’re seeing this play out in live transactions. Octane Capital has recently supported landlords using refurbishment funding to modernise tired buy-to-let properties, reconfigure layouts, and improve EPC ratings. In several cases, relatively modest works have led to meaningful uplifts in rent and valuation, strengthening refinance options and improving overall portfolio resilience.

We often see investors use bridging finance before or after refurbishment finance to help secure assets and provide flexibility. Using a bridging loan to acquire a property pre-planning permission, with refurbishment finance lined up for when it’s granted is a common theme for Octane. Similarly, where a borrower has completed a refurbishment using refurbishment finance, a bridging loan can be useful as a refinance tool to provide extra time to secure an exit and/or to release capital to keep a developer liquid.

In today’s market, incremental gains matter. Improving yield by even a small margin across multiple properties can have a material impact on portfolio performance. Brokers who actively explore refurbishment options are better placed to help clients unlock that hidden value rather than relying solely on acquisitions to drive growth.

As investor priorities continue to evolve, refurbishment finance should be a core consideration. It’s a practical, flexible solution that allows clients to maximise what they already own — and positions brokers as trusted, strategic advisers rather than just transaction facilitators.