Studio is refurbished late - that's right (7)
I believe the answer is:
atelier
'studio' is the definition.
(atelier is a kind of studio)
'refurbished late that's right' is the wordplay.
'refurbished' indicates an anagram.
'that's' becomes 'ie'.
'right' becomes 'R' (common abbreviation).
'late' with letters rearranged gives 'atel'.
'atel'+'ie'+'r'='ATELIER'
'is' acts as a link.
(Other definitions for atelier that I've seen before include "I relate to workshop used by artist" , "Designer's workshop" , "Artist's workshop, studio" , "Tie earl up in the artist's place" , "Artist's studio (French)" .)