Funding a 6-Unit HMO Conversion with Bridging Finance

George O’Connor

August 13, 2026

From Property Purchase to 6-Unit HMO Refinance 🏢

KSEYE provided a £393,750 residential bridging loan at 70% LTV to support the purchase and conversion of a £525,000 property into a 6-unit HMO, providing short-term property finance ahead of refinance.

The borrower planned to carry out a light refurbishment, including an internal strip-out and an extension to create an additional unit. The works were self-funded, with the bridging facility providing the funding required for the acquisition.

The borrower identified an opportunity to transform the property into a 6-unit HMO, increasing the amount of available rental accommodation and the property’s potential rental income. By self-funding the refurbishment works, the borrower was able to focus the bridging facility on securing the property and progressing the conversion.

Why it Worked

The residential bridging loan provided the short-term property finance needed to complete the purchase and begin the HMO conversion without delay. With the refurbishment works self-funded, the facility could focus on the acquisition while supporting the planned conversion and extension.

The facility also provided a clear route through to refinance once the conversion is complete and the HMO licence has been obtained.

From Purchase to HMO Refinance

The project provides a clear journey from property acquisition and refurbishment through to HMO conversion and longer-term refinance.

Once the works are complete and the necessary HMO licence is secured, the borrower intends to refinance the property, allowing them to retain the improved asset as part of their investment portfolio.

This case demonstrates how HMO bridging finance can support property purchases, refurbishment and conversion projects, giving property investors a route from acquisition through to longer-term HMO refinance.

If your client needs HMO bridging finance for a property purchase, conversion or refurbishment project, KSEYE can help structure a solution around the investment strategy. Speak to our team today to discuss your client’s HMO or residential bridging requirements.