Refinancing a Completed HMO from Bridging to Long-Term Investment Finance

The Requirement:

We were asked to assist with the refinance of a completed conversion from short-term bridging finance onto a long-term term facility. The client had used a conversion facility to carry out works and now wanted to:

• Exit the existing conversion finance.
• Move onto stable, long-term investment funding.
• Retain the property as a fully let HMO.

About The Property:

The security was a recently converted 6-bedroom HMO with:

• GDV: £490,000
• Rental income: £4,550 per calendar month
• Annual rental income: £54,600

The property had moved from works-in-progress to a fully completed and income-producing HMO.

How we helped:

• Assessed the completed scheme, including GDV and rental performance.
• Identified suitable lenders able to refinance from conversion finance onto a term HMO facility.
• Structured the case around the new HMO configuration and the demonstrated rental income, presenting a clear, lender-friendly story of the asset as a completed HMO.

This allowed us to line up term funding based on the improved value and income, rather than the original purchase or conversion position.

The Outcome:

We refinanced the existing conversion facility onto a £367,000 long-term term facility, allowing the client to:

• Repay their development finance in full.
• Hold the property as a completed 6-bedroom HMO on appropriate investment terms.
• Benefit from a funding structure aligned with the property’s completed value and strong rental income.