Project Overview
The client needed funds to purchase a 2-bedroom house to convert into a 4-bed HMO. The value of the security upon purchase was £45k and below our minimum property value of 50k, however even though this sat outside of the criteria we were able to take a common sense approach and approve this loan facility due to the uplift GDV value of £95k after the client had self-funded the refurbishment works of £17,400.
The client was struggling to find a lender who could accommodate such a low purchase price and loan amount.
Challenges and Resolutions
Very low-security value and low loan amount.
We were able to resolve this by way of exception with our funding partners and internal flexibility.
Financial Breakdown
- Purchase Price: £45,000
- Refurbishment Costs: £17,400 (self-funded by the client)
- Projected End Value: £95,000
- Loan-to-Value (LTV): 75%
- Gross Loan: £33,750
- Loan Term: 12 months
Outcome
The client successfully secured funding and purchased the property. With refurbishment underway, the projected GDV of £95,000 highlighted a significant uplift in value, paving the way for increased rental income and future equity growth.
Contact Us
Call us at 01925 467170 or email [email protected] to discuss your next project and find the right solution for your needs!
