Property refurbishment
Improving condition and layout to raise value or rent.
In plain English
Refurbishment can add value — but only if buyers or tenants will pay more than it costs. Always get several quotes and add a contingency.
Switch to professional for underwriting detail.
Capital requirements
Works budget plus 10–20% contingency.
Cost assumptions to budget for
- Materials and labour (+VAT)
- Design and building control
- Holding costs during works
Potential returns
Value or rent uplift vs cost.
Main risks
- Overruns
- Discovering defects (damp, structure)
- Over-specifying for the area
Legal checks
- Party Wall etc. Act 1996 notices
- Planning for external changes
Regulatory checks
- Building regulations and certificates
Is it suitable?
Often suits
- Investors with reliable trades
Usually not suitable for
- Tight budgets without contingency
A general guide, not a personal recommendation. Suitability depends on your finances, experience and attitude to risk.
Step-by-step
- Survey to find defects.
- Get quotes; fill the refurbishment estimator.
- Check planning/building regs.
- Manage works and sign-offs.
Financial calculations
Your offer or asking price.
Use local letting agents' valuations — not included in this report unless shown.
e.g. licensing, safety certificates
Default costs are assumptions for illustration — replace them with your own quotes. Stamp duty (£15,000) and refurbishment (£0) come from the other tabs.
After income tax (owned personally)
An estimate for one owner in England, Wales or Northern Ireland, assuming all the profit falls in the band you choose and ignoring carried-forward amounts. Companies pay corporation tax instead and can deduct interest. Check with an accountant.
Three scenarios
| Scenario | Cashflow / month | Net yield | Cash-on-cash |
|---|---|---|---|
| Conservative | £-1,124 | -0.13% | -16.73% |
| Expected | £-884 | -0.11% | -13.17% |
| Optimistic | £-804 | -0.10% | -11.97% |
Conservative: rent −10%, rate +1.5 points, 4 extra void weeks, running costs +20%, works +20%. Optimistic: rent +5%, rate −0.5 points, 1 fewer void week, running costs −10%, works −5%. These are projections from your inputs, not guaranteed returns.
Sensitivity: annual cashflow
| Rent | Rate -1% | Rate +0% | Rate +1% | Rate +2% |
|---|---|---|---|---|
| -10% | £-8,737 | £-10,612 | £-12,487 | £-14,362 |
| +0% | £-8,737 | £-10,612 | £-12,487 | £-14,362 |
| +10% | £-8,737 | £-10,612 | £-12,487 | £-14,362 |
Official sources
Last reviewed 31 Oct 2026. Rules change — check the source before relying on this guide.
Not advice