efinance of HMO Project with Planning Issues

The Requirement:

Our client was looking to secure refinancing of a property converted into 6 self-contained flats, however the client had debt, a poor credit profile and the flats had planning issues to address.

The Interesting Stuff:

The main property had recently been converted into 6 self-contained flats in Swindon, however the right planning had not been in place during the build process. Each flat was under 30-square metres and they did not have the separate meters to record the utilities for each tenant. Despite this the council had signed off the planning so the build went ahead.

Our client was looking to refinance the HMO to address the issues, as well as refinance a semi-commercial property they owned.

The client did have existing debt and a poor credit profile. We reviewed the situation and worked with the client to find the right lender for what was needed.

The chosen lender had the ability to take a commercial view on the client’s position, and with new planning proposed for the changes needed, they were able to provide the refinancing of the current mortgage, together with enough to raise funds that would clear the client’s personal loans and finish the project.

The result was a 5-year specialist facility to allow the client time to repair their credit profile. They have now already rectified the planning issues and will be able to refinance in 2 years’ time back to more competitive rates.

How we helped:

Planning issues and poor credit doesn’t necessarily mean a lender wouldn’t provide the funding. Although some may not have the appetite, we have a panel of lenders we can go to for specialist cases such as this.