Refinancing Loan from Commercial Valuation on HMO

The Requirement:

A client needed help to be able to release equity on a HMO, that they had spent funds on converting from a basic 6 bedroom HMO to a state-of-the-art HMO with 6 en-suites. The aim was to release further funds to continue refurbishing their other HMOs. They are portfolio landlords and have many HMOs in the same area.

The Interesting Stuff:

Our client had recently refurbished and extended a 6 bedroom HMO, all with en-suites, and it was situated in a non-article 4 location. They were planning their next project and needed help with organising a refinancing loan to be able release tied-up equity.

We were able to get the client a commercial valuation for their HMO property which gave them an extra £100k above the value of the HMO’s residential valuation. This then enabled us to secure 75% of the enhanced value to refinance their existing debt, which released valuable equity to go into their new project.

How we helped:

With our knowledge and understanding of what lenders require and how property can be valued, we knew a commercial valuation would give our client the better financial rates for their refinancing loan.