Fewer lenders, a lower loan or extra conditions. The loan that fits: Heavy refurbishment, as this is the lot is described as needing work. The things to check above are what a lender will look at too.
- Likely loan
- Up to 70% of the pricePlus up to 100% of the works
- On the expected hammer
- About £20,000The guide plus 15%; Savills lots have sold at +22% on the guide (median of 248)
- Example rate
- 0.9% to 1.15% a monthArrangement fee about 2%
In its favour
- 990 years left on the lease
- Sold vacant
What lenders will note
- Check Outside London and the Home Counties (Middlesbrough): fewer lenders, and values need strong local evidence
- Check A loan of about £20,000: below many lenders' £75,000 minimum
If you let it
Typical rent about £498 a month, a gross yield of 20.8% on the expected hammer. The rent supports a 75% buy-to-let mortgage (up to about £87,000), so refinancing out of a bridge works on these figures. A yield this high usually means a reason for the low guide (the lease, a tenancy, the building or its condition): read the legal pack before you rely on it.
ONS average for a 1-bed home in Middlesbrough, Sept 2026. Refinance test: rent covers the interest 125% at a 5.5% stress rate, as lenders test a limited company; personal borrowers are often tested harder.
Information a lender will need first
- The floor area (an EPC or a floorplan)
What a lender will ask you for on a heavy refurbishment
- Photo ID and proof of address
- Proof of your deposit and where it came from
- The legal pack, read by your solicitor before you bid
- Your exit plan: sale or refinance, with evidence (comparables, or a mortgage in principle)
- The lease, with the ground rent and service charge
- A schedule of works with costs
- A builder's quote
- A structural engineer's report if the works are structural
- A valuation, which the lender instructs
We have access to lending of up to 75% of the purchase price, with up to 100% of the build cost. Tell us about the lot and we can put you in touch. Ratings and figures are a guide from the published facts, not an offer of finance or advice. Stations from NaPTAN.