Renovation tiers + scope + spec + tenant-grade considerations
Tier 1 — Light refresh £18,000–£35,000 per 2-bed flat or 3-bed terrace: full repaint Dulux Trade Diamond Matt (durable scrubable) £2,400–£4,200; carpet (commercial nylon Berber £18–£28/m²) £2,800–£4,800; kitchen refresh — replace doors + worktops + sink + taps £4,500–£8,500; bathroom refresh — tiles + bath panel + WC + WHB + taps £2,800–£4,800; gas safety + EICR + EPC £350; minor repairs £1,800–£3,400; tenant-ready clean £450. Programme 3–5 weeks. Target: 8–15% rent uplift between tenancies. Tier 2 — Mid renovation £45,000–£95,000: full rewire to 18th Edition + new consumer unit £4,800–£8,500 ([[house-rewire-cost-london-detailed]]); replumb £3,800–£7,500; new kitchen IKEA Metod/Howdens trade £8,500–£18,500; new bathroom £8,500–£14,500; insulation upgrade to EPC C £3,400–£6,800; Worcester Bosch Greenstar 30i + Hive £2,800–£4,200; internal doors + ironmongery £2,400–£4,800; decoration £4,200–£8,500; engineered oak + LVT + carpet £4,500–£9,500; light fittings + sockets + alarms £1,200–£2,400; window seals + heating controls £1,800–£3,400; certification £950. Programme 8–14 weeks. Target: 25–40% rent uplift + EPC C. Tier 3 — Full refurb + extension £125,000–£245,000: structural opening £6,800–£14,500; side-return 14–22m² £75,000–£135,000 ([[side-return-cost-london]]); loft conversion £55,000–£95,000 ([[loft-conversion-cost-london]]); full rewire + replumb + heating + bathrooms + kitchen + decoration + flooring + ASHP optional £14,500–£22,500. Programme 18–32 weeks. Target: 35–55% rent uplift + EPC B + value uplift 25–45%. Tenant-grade spec principles: durability over aesthetics — engineered oak/LVT over solid wood; nylon Berber over wool; white/off-white Dulux Trade Diamond Matt (scrubable); ceramic floor tile over porcelain; IKEA Metod/Howdens over bespoke (replacement panels available); steel inset sink over Belfast; pressed steel bath over freestanding; standard radiators over designer; LED downlight over pendant; brass/chrome taps over matte black.
MEES EPC C + Section 24 tax + ROI + finance + Builderr default
MEES 2026: EPC E legally required since 2018; new tenancies from April 2025 require EPC C; ALL existing tenancies EPC C by 2030 per current policy. £30,000 civil penalty per breach + RRO risk. Upgrade routes: (1) Insulation — loft 270mm + cavity + floor £3,400–£6,800; (2) Boiler — A-rated condensing or heat pump £2,800–£12,500; (3) Windows — double minimum, triple if replacement scheduled £6,400–£18,500; (4) Heating controls — TRVs + smart thermostat + zones £450–£1,400; (5) Lighting — LED throughout £180–£480; (6) Solar PV — 3kWp £4,800–£8,500 (boosts SAP 8–15 = tips D→C commonly). Target SAP 69+. EPC reassessment £80–£180. Section 24 mortgage interest restriction (Finance Act 2015) phased 2017–2020 — landlords cannot deduct mortgage interest before tax; 20% tax credit instead. Higher-rate landlords effective tax 40–47% on rental profit. Mitigation: (1) Limited company (SPV) — Corp Tax 25% + interest fully deductible; rates 1–1.5% higher + remortgage + SDLT on transfer = viable for new acquisitions or large portfolios; (2) Reduce LTV — pay down to reduce interest; (3) Higher-yield (HMO) — gross absorbs Section 24; (4) Spouse transfer — basic-rate spouse holds equity = full deduction. Consult tax advisor. ROI on BTL renovation London 2026: Tier 1 — 8–15% rent uplift = £1,200–£2,800/year + 8% capital uplift = £8,800–£14,500 = payback 12–18 months. Tier 2 — 25–40% rent uplift = £4,500–£8,500/year + 18% capital uplift = £45k–£95k = payback 5–8 years on rent or 8–18 months on equity release refinance. Tier 3 — 35–55% rent uplift + 25–45% capital uplift = £85k–£245k typically exceeds renovation cost. Finance: BTL refinance 70–75% LTV on uplifted value — equity recycled. Bridging finance (0.6–1.2%/month) for purchase + renovation, refinanced to BTL on completion — 3–6 month cycle scales portfolio. Builderr default for BTL clients: pre-purchase walk-through £350 to scope tier + budget + EPC route + ROI projection; project-managed renovation with fortnightly cost report + variation log; BTL broker partnership (Mortgages for Business, Property Master) + tax advisor (RSM, Mazars); tenanted-property handover with full certification + tenancy-ready pack. See [[converting-house-to-hmo-london-planning]] + [[mees-regulations-private-rented-london]] + [[landlord-electrical-safety-eicr-london]].
