Bridging Loan and Refinancing for Property Purchase and HMO Conversion.

The Requirement:

A client needed a Bridging Loan to purchase a 4 bedroom terraced property from auction, and then additional refinancing to convert the property to a five bedroom HMO.

The Interesting Stuff:

A client purchased a 4 bedroom terraced property from auction, that they converted it into a five bedroom HMO.

The property was purchased with an initial Bridging Loan at 85% loan to value, with the client funding the conversion works.

Once the development was finished, we supported them with refinancing the bridging loan internally with the lender onto a five year fixed product against the properties new value as a 5 bedroom HMO, providing funds at 75% of the market value on an investment based survey.

The client was able to expand their property portfolio and letting business.

How we helped:

Internal refinances are a good way of securing long term loans and using the investment valuation can often release more capital compared to traditional buy to let loans.