Refurbishment GDV Loans: 5 Things Underwriters Look For

As an underwriter at LendInvest, Samantha Toms knows what’s needed to get a Refurb GDV deal over the line. In this guide, she breaks down the 5 things she looks for when a case lands on her desk.

A Refurbishment GDV loan provides finance against the projected Gross Development Value (GDV), helping brokers and their clients consider higher-leverage opportunities. With up to 75% day 1 LTV and funding of up to 100% of eligible refurbishment costs, the facility provides greater leverage, with funds drawn in stages throughout the project as the works progress.

Refurb GDV is one of the more rewarding products I underwrite at LendInvest, and it’s one I’ve helped shape the process for since it launched. This type of short-term financing is built for the broker whose client is ready to go beyond a simple cosmetic refresh. Whether they’re undertaking a light refurbishment, full renovation, an extension or a conversion. With up to 3 staged drawdowns funded in arrears, this type of funding provides the flexibility to match the scale of the project. 

As an underwriter reviewing these cases daily, here are five key details I look for in a Refurb GDV application, and how including them can fast-track your client’s route to an offer.

A Realistic Schedule of Works

This is where every case starts. Once an application is submitted, we appoint the Monitoring Surveyor (MS) and valuer to independently review the proposed Schedule of Works, costs and projected GDV alongside our own underwriting.

We look for a schedule that:

• Includes a genuine contingency, not just the base build cost
• Reflects current material and labour costs
• Matches the borrower’s stated scope of works
• Stands up to review by the MS, valuer and our lending team
• Supports the proposed GDV and overall lending structure

If something doesn’t add up, we’ll address it before we lend, not after. Getting the Schedule of Works right at the submission stage helps us identify issues early and keeps the path to a fast decision clear.

Borrower Track Record and Experience

Track record matters, and it shapes the structure of the deal as much as it shapes the confidence in it. Where structural work and conversions are involved, I want to see:

• At least one comparable project the borrower has delivered

• Where the borrower has appointed a main contractor, evidence of their experience, not just the borrower’s own history

• A team set-up that matches the complexity of what’s being proposed

A first-time developer taking on a full HMO conversion is a very different proposition to an experienced landlord doing the same thing for the fourth time. That doesn’t rule anyone out, but it does inform how closely we monitor the build and how the drawdowns are staged.

A Clear Exit Route Strategy

An exit strategy that only works in the best-case scenario isn’t really an exit strategy, and it’s the area I probe hardest.

I want to see a realistic sale or refinance route, grounded in the local market rather than optimism. That means:

• If refinance is the plan, what would this case look like to a mortgage lender once works are complete?

• If it’s sale, is the projected GDV supported by genuine, recent comparables, not the top end of what similar properties have achieved?

• Is there a credible fallback if the preferred exit takes longer than expected?

Confirmed Planning Permission

This one can make or break a timeline, and it’s a question I’ll always come back to early. Heavy refurbishment involving structural changes, extensions or a change of use often needs planning permission or building regulations approval, and that has a direct knock-on effect on how realistic both the schedule and the exit are.

We establish the planning position early to ensure the case is on the right product.

If planning permission is required, it must be in place before loan completion. Where the works fall under permitted development, we’ll need confirmation that the relevant rights apply.

Getting this right upfront helps avoid delays and ensures the works, valuation and funding structure all align.

Commercial Viability: Location, Property Demand and LTV

Last but not least, the whole project needs to be commercially viable. Is there genuine buyer or tenant demand for the finished product, in that location, at that price point? A strong renovation in the wrong location can still struggle to sell or let, no matter how good the finish.

From there, we set the LTV to reflect everything above: the strength of the schedule, the borrower’s experience and how comfortable we are with the exit. We can lend up to 75% Day 1 LTV, up to 70% LTGDV and up to 90% on Refurb GDV facilities, but where a case sits within that range is always a function of the other four points, not a starting assumption.

Quick Checklist: What Speeds up a Refurb GDV Decision

If you’re bringing us a Refurb GDV enquiry, having the following ready from the outset will always move things faster:

• A detailed, realistic schedule of works with contingency built in

• Evidence of the borrower’s and contractors’ track record on comparable projects

• A clear, evidenced exit strategy, with a fallback if plans change

• Confirmation of planning/permitted development status, and next steps if consent is still pending

• A sense check on local demand to support the projected GDV

None of these five points sits in isolation. A borrower with a strong track record and a realistic schedule still needs a credible exit. A great location doesn’t help if the budget won’t stretch to finish the job. The more of this you can evidence upfront, the faster we can move; our team reviews enquiries quickly, and direct access to our underwriters means you’re never far from an answer.

What I’ve come to enjoy most about underwriting this product is that no two cases ever ask the same questions of me. A commercial to residential conversion in a city centre or an HMO  in a market town can both tick every box on this list and still need completely different judgement calls. That’s the part of the job a checklist can’t capture, and it’s exactly why we dedicate an underwriter, not just a system, to every one of these deals.