In March 2021, the investors bought a single residential property in Windsor intending to convert it into a House of Multiple Occupancy (HMO). It was a three-bedroom, one-bathroom, vacant terrace house in need of modernisation. They bought the property at auction using their own money for the initial deposit and a short-term refurbishment loan to settle the balance as part of the Game Changer process. CPC Finance worked with the investors to secure the loan from Octane Capital. The property cost £280,000 and the investors secured a gross loan of £350,000 for the purchase and conversion works. They used the experience of Savoy Group to source the property, complete the conversion and manage the property.
In order to convert the single residential property into a six-bedroom HMO, on behalf of the investors, Savoys Group undertook extensive work including full renovations, an internal brick skin, and rear extension. The property was a non-standard construction, made from concrete slabs so was unmortgageable with most lenders. In total the works took five and a half months.
Now, the property is a six-bedroom HMO with en-suite bathrooms for each bedroom and a communal kitchen. The investors anticipate making £4,100 in monthly rent from the property. After works, the property has been valued at £545,000. Working with CPC Finance, the investors secured a buy-to-let term mortgage from Shawbrook Bank to exit the project. The loan was 75% LTV and worth £414,000 over a 20-year term at 4.34%. From purchase to securing the exit loan, the project took a total of nine months.
Now, having followed the Game Changer process, the investors have a profitable HMO on a mortgageable property.