Finance to Cover the Purchase and Planned Development of an existing Three Bedroom HMO.

The Requirement:

A client contacted us as they required Finance to support the purchase, and additional planned works needed, of a 3-bedroom HMO that was being sold at auction. The end goal they had was to convert the property to a 6-bedroom HMO.

The Interesting Stuff:

There were a few interesting factors that made this a relatively straightforward deal, firstly the property was in a decent student area making it prime HMO real estate. Secondly the property had already been converted to an HMO, which meant our client could go onto convert the property to a 6 bedroom with ease.

Because of these previously mentioned factors we were able to present a host of lenders to our client, giving them the option to choose a product that best served their needs.

Working off a £500,000 GDV we were able to secure a 12-month bridge with a day one LTV of 70%. This enabled the client to purchase and renovate the property finally, and refinancing at the end of the term.

How we helped:

Due to the property being purchased at auction the funds were required as soon as possible, thankfully we made use of our vast lending panel to select a lender that could not only fund the works, but also formally finalise the loan in quick succession. This enabled our client to draw down after only three weeks from start to finish.