Refurbishing a UK Buy-to-Let From Abroad: Scope, Contractors and Controlling Cost
Many overseas investors buy a tired UK property and refurbish it to let. The numbers can work, but the plan has to be written down before you buy: what will be done, who will do it, what permissions are needed and what happens if costs rise.
This Banke UK guide sets out a sensible way to scope and manage a refurbishment when you are not on site.
The Short Answer
Get a written scope of works and at least two or three itemised quotes before you exchange contracts, get a survey that tells you what is actually wrong, and hold back a contingency for the things nobody can see yet. Pay in stages against completed work, not up front. Our guide to choosing a survey explains what each survey level looks at.
Step 1: Decide What Needs Doing
Separate the work into three groups.
- Must do. Safety and legal items: electrics, gas, damp, roof, smoke and carbon monoxide alarms and anything the survey flags as urgent.
- Should do. Work that makes the property easier to let and keeps it let: kitchen and bathroom condition, heating, flooring, decoration.
- Nice to have. Upgrades that may not change the rent you can achieve. Be sceptical about these.
Check the energy performance too. Landlord energy rules have been tightening, and our guide to the new EPC rules for UK landlords explains why an EPC upgrade may belong in your scope.
Step 2: Check Permissions
Cosmetic work usually needs no permission. Structural changes, extensions and loft conversions may need planning permission or building regulations approval. Leasehold flats usually need the freeholder's consent for alterations. See planning and building regulations checks for extensions and loft conversions. Ask the local council, and take advice before you assume anything is allowed.
Step 3: Choose Contractors Carefully
- Get at least two or three quotes, itemised by task and including materials.
- Ask for proof of insurance and, for gas and electrical work, the relevant registrations.
- Ask to speak to recent customers or see recent work.
- Agree a start date, a finish date and what happens if the work overruns.
- Put everything in a written contract, even for a small job.
Step 4: Control Cost From Abroad
- Staged payments. Pay against agreed milestones, after you have seen photographs or an independent check.
- Contingency. Many owners hold back a margin for surprises. The right size depends on the age and condition of the property.
- Variation log. Any extra work should be priced and agreed in writing before it starts.
- A local representative. A project manager, agent or trusted contact who can visit on your behalf is worth the fee for anything beyond decoration.
Step 5: Finish Properly Before Letting
Keep certificates and guarantees. Update the EPC if relevant, arrange gas and electrical safety checks and prepare an inventory. Our guide to the check-in report and inventory shows what to record. Check your insurance still covers the property now that works are complete.
Common Mistakes
- Buying without a survey and discovering damp or wiring problems afterwards.
- Paying a large deposit to a contractor before work starts.
- Assuming a leasehold flat can be altered freely.
- Underestimating how long void periods last during works.
- Over-specifying finish for a standard rental.
Tax treatment of repairs and improvements differs, and depends on your circumstances. Ask a UK-qualified tax adviser before you start.
Talk to Banke UK
If you would like help applying this to a specific property, contact the Banke UK team with your budget, timeline and what you want to achieve.
This article is general information, not legal, tax or financial advice. Rules, fees and procedures change, so confirm current details with the relevant authority or a qualified professional before you commit money.