Car showroom to café and apartments

Loan type: Short term loan and second charge loan
Loan purpose: Purchase and commercial to mixed use property conversion

Malkit Purewal was looking to purchase a former car showroom, which he planned to convert into four residential apartments, with commercial space underneath. Malkit initially needed finance to buy the property and worked with CPC Finance to secure a short term loan.

CPC Finance arranged, via Shawbrook Bank, a loan advance for 100% of the purchase together with an additional £100,000 to complete the works. This was done by using the client’s residential house as additional security and a comfort charge was registered behind his first mortgage.

Coffee Shop case study

Converted car showroom to café and apartments

Malkit explains, “We specialise in the more complex side of property investment, particularly in houses of multiple occupancy. We have been working with the CPC Finance team for two years and they are now our preferred commercial broker. The finance we need is often time-sensitive and CPC Finance really understands the best products out there for us. The team always deliver when they say they will and this has meant that recently we have been able to do about one deal per month with them.”

Now that the conversion is complete, Malkit is working with CPC Finance to move from the short term loan to a buy-to-let mortgage.  The uplift in the property’s value will mean the refinance will repay the short term loan and remove the charge on his residential house.

Refurbishment of a derelict building

Loan type: Short term loan
Loan value: £507,500
Loan purpose: Refurbishment of a derelict building

Mark Forrest of Leaf Forrest Ltd found a run-down property in Broadstairs Kent, ideal for renovation. Speed was of the essence in arranging the finance as the property was being purchased via a sealed bid process and Mark was aware that, if successful, completion would need to take place quickly. The CPC Finance team was approached by Mark and was able to arrange the short term finance within the timescales required.

Mark explains, “We have worked with CPC Finance for a few years now and regularly use the team to source finance for purchasing property through auctions in various locations. You have to be quick off the mark with auction purchases and we knew that CPC Finance would deliver the goods allowing completion to take place within the timescales imposed.”

Mark was able to start refurbishment work on the property and has increased the value of the house significantly – he will now be speaking with CPC Finance in order to arrange a term facility to repay the short term loan.

Four-week property turnaround from purchase to rental

Loan type: Short term loan converted to BTL mortgage
Loan purpose: Refurbishment works and hold-to-let 

The property is in Boothtown, a suburb of Halifax, an area with a strong rental demand due to proximity to good primary and secondary schools. The deal was conducted off-market and the investors first made their offer on the property over a year prior to purchase. The investors agreed to fit in with the owner’s timeline regarding the sale. A completion date was agreed and postponed twice in the eight months leading up to completion and eventually a firm date was settled on for the end of June 2019.

The purchase was financed through a short-term bridging loan from Shawbrook Bank, to be converted to a BTL mortgage once the work was completed and the property tenanted.

The investors carried out light refurbishment work, including installing a Damp Proof Course (DPC) on the ground floor, a new boiler, insulation in the loft bedroom area and a complete redecoration top to bottom with new carpets. From time of purchase, the investors were able to carry out the works and get a tenant in place within four weeks.

For more details about this case study including cost and ROI calculations, see our blog.

Investors looking to take out a HMO mortgage under the name of a limited company should refer to our Limited Companies / Special Purpose Vehicles section.

Top Tips


Putting a lock on every room is not the same as an HMO. If you do not ensure that your property is HMO-specific, valuers and lenders may only see it as having the value of the family home it once was.


It is particularly important with HMOs to make sure it is a high quality property in order to get the desired long term return on investment.


Be aware of local council legislation, for example where there is an Article 4 Direction in the area. This will impact on the planning permissions needed for conversion into an HMO.

Get in touch today to discuss your HMO plans in more detail.