Loan type: Heavy refurbishment short term loan and buy-to-let mortgage
An investor purchased a three-bedroom house with a non-conforming construction and adjoining land. The investor paid £340,000 to buy the property and land together, intending to convert it into a five-bedroom House of Multiple Occupancy (HMO). CPC Finance helped the investor obtain a heavy refurbishment short term loan of £255,000 to purchase the property and split title on completion.
A valuation was carried out, which provided a GDV figure which could be relied upon for a 6-month period and excluded the adjoining land.
The investor spent £80,000 to convert the property. The works included a rear extension and en-suite bathrooms for each of the new five bedrooms.
A re-inspection for the valuer to confirm all works were completed and as this was within 6 months, the lender could rely on the figure confirmed in the original report.
Upon completion of the term facility, the investor owned a five-bedroom HMO property worth £460,000, generating an income of £35,000 per annum and a separate parcel of land mortgage-free, giving the investor the option to build on the land in the future.