Bespoke Finance

What is a Schedule of Works?

When you purchase a property, that is in need of renovation you often need a Schedule of Works. The document is used at both stages at the initial request for Short Term Finance (on current value) and again on the request for Sale/Mortgage (on value after renovation).

A schedule of works is a document that oulines the works that you will complete to the property, this is a document that you put together prior to purchasing the property in order to show the lender the extent of the works you will complete, the time scale and the cost of doing so.

The document is also often re-used when you come to refinance the property, after the works have been completed. The mortgage lender will want a document in which outlines what improvements you have done to the property to justify the increase in value since purchase. The valuer is often asked to check the works were completed and costs noted were appropriate.

Schedule of Works Template

You can download our Schedule of Works Template.

This template is based on a light refurbishment, heavy refurbishment will require a lot more detail and often best to get the template from the lender themselves.

Schedule of Works Accuracy and Recording

When completing your Schedule of Works it must be budgeted to the appropriate cost, an unrealistic budget could be dismissed by the lender.

In addition some lenders put the onus on the Valuer to comment if the costs projected were correct, after they come back to look at the property after the renovation.

This leads us to once the works have started, to always ensure you keep a record of receipts.

Expected Costs and Savings

As well as a Schedule of Works document outlining the works you will complete it should contain the expected costs of the works. It is often likely that the short term lender will request of evidence of the funds required to support the level of refurbishment spend planned.

On application - your mortgage broker will therefore request proof of deposit (for the mortgage) and proof of funds (for the renovation).

Evidence of Works & Expenditure

When you come to refinance the property the lender will be aware of your initial purchase price as recorded on the Land Registry - this will leave them questioning how the property has increased in value since you first purchased it.

They will not take your word for it.

Instead you can provide them the original Schedule of Works document, this is often requested and outlines the works that you have completed to improve the property.

The lender will also ask the valuer to come around to assess if the works have been completed and if they are of the value you suggested you paid for them. You should therefor have a copy of any Receipts and Invoices of Contractors available to be provided to the valuer on there visit.

The last but not least, is the Before and After photographs - these are important to show a vast improvement to the property. Showing perhaps a tattered and old kitchen compared to the new shiny kitchen you have replaced.

Ensure you keep detailed records, it will help in convincing the remortgage lender that you have improved the value of the property.

One More Thing ....

It is often overlooked but if you are into renovating properties, to increase there value or sell. Ensure that your conveyncer is prompt in registering the property at the Land Registry at the date of completion. This is often overlooked by conveyancers and completed sometimes weeks if not months after.. Not having your name on LR can cause problems with "ownership time" or even if you own it at all with the next lender.

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Bespoke Finance is a trading style of Bespoke Finance Direct Limited.

Bespoke Finance Direct Limited is authorised and regulated by the Financial Conduct Authority (No. 715805) to transact regulated mortgages.

The FCA does not regulate some investment mortgage contracts.

Bespoke Finance Direct Limited is registered in England and Wales (No. 09623432) at 31 Church Lane, Pudsey, LS28 7LD.

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