| Property | Three-bed house converted into a five-bedroom HMO |
|---|---|
| Location | Earlsdon, Coventry |
| Client | Investor who bought with bridging finance and refurbished |
| Product | HMO mortgages |
The challenge
The house had been bought for £210,000 with a bridging loan and converted into a five-bed HMO. The bridge needed repaying, and some lenders insist on six months of ownership before valuing on the new figure.
What we did
We planned the exit before the purchase, choosing an HMO lender happy to refinance within six months. Once the HMO licence and building control sign-off arrived, we instructed the valuation with the finished works schedule and room rents. The new mortgage repaid the bridge in full.
The outcome
The investor recovered most of the money put in and now holds the HMO on a long-term mortgage.
HMO mortgagesMortgages for houses in multiple occupation, from small shared houses to large licensed HMOs.
Learn moreImportant: Most buy-to-let mortgages are not regulated by the FCA. Your property may be repossessed if you do not keep up repayments, and a receiver of rent may be appointed.