New funding options aim to support residential refurbishments and commercial-to-residential conversions
SME property finance provider Assetz Capital has introduced a suite of lower-cost finance products, all priced below 10% per annum, aimed at supporting residential refurbishment projects and town regeneration schemes.
The new offerings include development exit loans for residential schemes, starting at 9.5% per annum. These loans are designed to help developers maximise profits during the final sale stages of a project.
Residential refurbishment loans, priced from 9.75% per annum, will facilitate the conversion of existing properties. Additionally, planning assistance loans, starting at 9.5% per annum, will allow experienced developers to begin commercial-to-residential conversions before securing full planning permission.
These products follow Assetz Capital’s recent launch of ground-up development finance rates starting at 9.35% per annum, reflecting the lender’s commitment to providing competitive options for property developers.
Andrew Fraser (pictured), chief commercial officer at Assetz Capital, said the new pricing aligns with the government’s push to revitalise urban centres.
“We’re excited to bring these newly priced products to market now, complementing our sub-10% ground-up development finance rates, which have been warmly received by the market,” Fraser said. “At Assetz Capital, we believe that both the refurbishment and urban regeneration markets are vital components in the government’s strategy to ‘get Britain building again.’
“The already large amount of vacant commercial and business premises will likely grow as business continues to rationalise the commercial space it requires, while the use of city centre retail space continues to fall.
“We also believe that many urban areas in decline, with empty offices and high streets, could have new life breathed into them through the conversion of empty and decaying spaces. This is an area we specialise in and have already helped many property developers in this sector.”
According to Assetz Capital, the UK currently has an estimated 165,000 privately owned commercial and business premises sitting vacant, alongside 7,000 properties owned by local authorities that have been unoccupied for over 12 months. These figures are expected to rise as businesses reassess their need for commercial space and city centre retail activity continues to decline.
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