I find this all too handy. Money that you raise for the renovation is provided for that purpose. This is often on deposit and you have to submit invoices to clear the bill. But even if the financier does not apply that control measure, that does not mean that you can use this money for acquisition purposes. Of course you go free as long as it goes well, but do you want to take that chance?
In addition, a bank may require a reappraisal after a certain moment in order to re-determine the value of the converted collateral. Then someone comes to see and finds that the renovation has not taken place while the financier has provided the funds. Oops … loan is due, fine on your ass and I know a lot more hassle. Forced sale of a building that still needs to be rebuilt … Take another residual debt. I wonder if you will be eligible for it after such antics.
I would find it a better plan to start working with a vendor loan. That is French for a loan that the seller provides to the buyer. Of course a salesman does not like that, but what is his alternative? Do not sell? He already has a lot of tobacco. In addition, it becomes difficult to sell to a third party if your partner leaves after a transfer. In short: there should be an opening there. Certainly if you can still contribute something to your own resources. But not from money intended for renovation.
I do not immediately see the restriction on the use of consumer credit, although I have no experience with that. I think taking over a business is a better investment than a vacation or a new stereo. After all, there is still an upside and the risk profile is comparable for the financier. Just to be sure, check the small print on it.
Finally, I would recommend that you turn something into a business plan. After all, you are going to make an investment and then you want to make something of a return projection. Moreover, if it will all be successful then you may have to go to a bank again. Growing often costs a lot of money.