Client circumstances:
Our client, a young but experienced portfolio landlord working as a pharmacist for the NHS, required swift financing solution for a high-occupancy residential asset. Having originally purchased the property using a bridging loan, the client carried out extensive renovations to convert and upgrade the asset into a large 6-to-8-bed House in Multiple Occupation (HMO).
With the bridging loan nearing maturity, the goal was to clear the existing debt and secure long-term finance. Furthermore, because the extensive renovations significantly increased the property’s open market value, the client wanted to capital-raise against the newly created equity. This extra capital was earmarked to fund the purchase of a new property to further expand their investment portfolio.
Securing funding proved to be a challenge, as traditional lenders typically do not accommodate complex, large-scale HMO properties. Consequently, the client required a specialist lender capable of delivering a fast, flexible solution.
MT Finance solution:
Our specialist buy-to-let team got to work immediately. Because the broker proactively provided all necessary documentation right from the outset, the application was processed with maximum efficiency.
Following all necessary checks, we issued a formal offer in just five working days from instructing the valuation. The gross loan was structured at £461,075 at 80% LTV, set for a loan term of 25 years.
The benefits:
As a result of our ability to move swifty, the client successfully repaid the bridging loan, transitioning the asset smoothly onto a stable, 25-year long-term mortgage structure. Furthermore, by leveraging the value added through extensive renovations, the client was able to unlock equity, raising capital to expand their portfolio.
Find out more:
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