Refinance of 15 bed HMO, 2 Buy to lets and 3 Retail units on one title

A client approached us as he was struggling to refinance a new development he had recently finished.

The property consisted of 15 x HMO bedrooms, 2 x one bed flats and 3 x commercial / retail units on the ground floor, all on one title, with an expected value of £1.5m.

He had approached several brokers but had become frustrated that most didn’t understand the complex nature of the property split across three asset classes and those that did didn’t have the lenders who could accommodate such an asset.

After an initial conversation, we were quickly able to put together a detailed proposal of the site, breaking down the values, rental incomes and leases for all the separate units and were able to present this to lenders we knew would have appetite for such a scenario.

Within two days we were able to present the client with three different options from three different lenders and after a further conversation in which we went through the pros and cons of each lender and their indicative offers, we were able to start an application with the clients preferred choice.

The client elected for a lender we knew took pragmatic decisions and could turn the loan around in a prompt fashion, whilst offering 75% LTV (£1.125m) on a 5year fixed rate of 4.19%. This enabled the client to repay his development finance and leave him spare cash to invest into his next project.