Definition
Refurb is short for refurbishment: works carried out to repair, modernise, reconfigure or improve a property.
How it affects a property deal
Refurb assumptions affect cash in, rent downtime, finance cost, ARV, forced equity, IRR and deal quality. In a light refurb, the main issue may be cost control. In a heavy refurb, timing, permissions, contractor risk and valuation risk become more important.
What to check
- Itemised quotes rather than broad estimates.
- Contingency for overruns.
- Expected rent and value after works.
- Void period and council tax or holding costs.
- Whether works require planning, building control or specialist surveys.