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Refurbishment Bridging Finance for a 6-Bedroom HMO Conversion in Denham
Supporting an HMO Conversion with Refurbishment Bridging Finance
KSEYE provided £312,897 in bridging finance to support the purchase and conversion of a 3-bedroom semi-detached house in Denham into a 6-bedroom HMO. The property was purchased for £435,000, with the borrower planning a substantial refurbishment to create the additional bedrooms. KSEYE will also fund the full refurbishment through a refurbishment bridging facility, with the works funded in arrears.
Why it Worked
The borrower required HMO bridging finance to complete the purchase and carry out the conversion works. The proposed refurbishment budget of £168,000 was reviewed by the valuer and considered realistic for the planned works.
KSEYE structured the facility to fund the entire build through a refurbishment bridging facility, with funds released in arrears as the works progress. This provided the borrower with a clear funding structure from acquisition through to completion and refinance.
Funding the Full HMO Refurbishment
The refurbishment bridging facility will fund the full cost of the planned works in arrears, giving the borrower access to funding as the 3-bedroom property is converted into a 6-bedroom HMO. This structure provides funding for the refurbishment alongside the initial property purchase, helping the project progress through each stage of the conversion.
Once the refurbishment and HMO conversion are complete, the borrower intends to refinance the property onto longer-term finance. This provides a clear exit strategy from the bridging loan while leaving the completed HMO positioned for its next stage as an investment property.
Whether your client is converting an existing property into an HMO or requires funding for a substantial refurbishment, KSEYE can structure HMO bridging finance and refurbishment finance around the requirements of the project.
Speak to our team today to discuss your client’s next HMO conversion or refurbishment project.
Loan Amount
£312,897
LTV
70%
Rate
0.94% pm
Purpose
HMO conversion and refurbishment
Rates reflect products at the time the loan was completed
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