HMO with works required before letting (Dec 2009)

Applicant approached us looking to purchase a House of Multiple Occupation. Works were required to bring the property up to standard and to obtain the necessary licence from the local authority. The dilemma here was that funding was required to assist in the purchase albeit that the property was not in a position to generate the required income from day one.

As the applicants had previous experience in property investment we were able to arrange for a commercial lender to advance an initial 70% of purchase price followed by a further release of funds up to 70% of the increased value once the property had been updated, obtained the appropriate HMO licence and let.

Terms agreed:

Interest Rate 4.5% above Bank of England Base Rate
Lender Fee 1.75%
Repayment over 20 years