Calculator
Refurb-to-let ROI calculator: the company's buy, refurbish, refinance numbers
Buy below market value, refurbish, let, refinance onto a limited company buy-to-let mortgage, repeat. The model below shows how much cash the company leaves in the deal after refinancing, how much comes back out for the next project, and the annual yield on what stays invested.
Refurb deals depend on bridge then term lender appetite. We package both ends.
The refinance is where company projects are won
The purchase and the works get the attention, but the refinance sets the return. The company's exit mortgage is constrained twice: by the post-works valuation through the loan-to-value cap, and by the achieved rent through the 125% company interest coverage ratio. A project that adds £60,000 of value but only £100 of monthly rent may find rental cover, not LTV, capping the proceeds, leaving more cash in the deal than the spreadsheet promised. The company structure compounds whatever the project earns: released funds stay in the SPV for the next deposit, interest stays fully deductible, and nothing forces a taxable extraction between projects. Valuer behaviour, lender appetite for recent works and the six-month conventions all vary across the panel, which is the placement work we do before the company commits to the purchase.
Stress the exit rent on the SPV stress test calculator, see how funds get in and out of the company in our company deposit guide, or start from the limited company buy-to-let mortgages hub.
Refurb-to-let questions
Why run refurb-to-rent through a limited company?
Because the strategy is a recycling machine, and the SPV recycles better. Refinance proceeds released at the end of each project stay inside the company as retained profit and working capital, funding the next purchase without passing through your personal tax return, and the mortgage interest on the growing book stays fully deductible against corporation tax. A personally held version of the same strategy leaks tax at every loop for a higher-rate owner.
How is the refinance assessed on the finished property?
Like any limited company buy-to-let: the new value through the loan-to-value cap, usually 75%, and the achieved rent through the 125% company ICR at a typical 5.5% stress. The refinance proceeds this calculator shows are the smaller of those two constraints, which is why a strong uplift in value only pays out fully when the rent rises with it.
What does cash left in the deal actually mean?
Everything the company put in, deposit, works, fees, minus everything the refinance returned. If the company buys for £150,000, spends £30,000, and refinances at 75% of a £240,000 end value, the new £180,000 loan repays the purchase debt and most of the costs, and whatever stays invested is the cash left in. The cash-on-cash yield then measures the annual profit against only that remaining stake, which is the honest return on the project.
Do lenders apply a six-month rule to company refinances?
Many lenders prefer six months of ownership before remortgaging at the new value, but the company market has well-trodden exceptions: several specialist and bridging-exit lenders will work from the post-works value earlier where the schedule of works and evidence support it. It is a placement question, and it materially changes how fast the company can recycle, so tell us the timetable before you buy.