Commercial Mortgage Refinance for a 12-Bed HMO

This case study shows how we helped a client refinance a newly completed mixed-use investment property, repay their development finance and release equity to support their next project.

The Challenge

Our client had successfully purchased and converted a large property into a high-yielding mixed-use investment.

The completed development included:

• A 12-bedroom HMO with en-suite student accommodation
• Two self-contained flats
• A commercial unit on the ground floor

Together, the property generated an annual rental income of approximately £80,000, creating a strong investment asset.

With the refurbishment and conversion complete, the client wanted to refinance onto a long-term commercial mortgage. Their objectives were to:

• Repay the existing development finance facility
• Recover as much of the conversion cost as possible
• Release equity from the completed property
• Secure funding for their next investment project

Our Solution

Positive Commercial Finance approached a range of specialist commercial mortgage lenders to identify the most suitable refinancing options.

After comparing the available facilities, we presented the client with a selection of competitive offers and explained the advantages of each.

The client chose a Commercial Mortgage Refinance at 75% Loan to Value (LTV), providing a loan of £630,000.

The refinance repaid the existing development finance in full while releasing additional capital that could be used as a deposit for the client’s next property investment.

Deal Structure

• Loan to Value (LTV): 75%
• Interest Rate: 5.76% fixed for 5 years
• Arrangement Fee: 1%
• Term: 10 years (interest only)

The Outcome

The client successfully refinanced the completed development onto a competitive long-term commercial mortgage.

The new facility repaid the original development finance while releasing valuable equity from the completed asset. This gave the client the flexibility to move quickly on their next property opportunity without needing to wait for additional capital to build up.

This case study demonstrates how Commercial Mortgage Refinance can help property investors unlock equity from completed developments, improve cash flow and continue growing their portfolios.