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Creating a seven-bedroom HMO from a semi-detached property

by | May 6, 2022 | Case Study

Maninder Chopra is one of the hosts of the Titans regular property networking and educational event, which CPC Finance sponsors. She is also a property investor in her own right. Recently she worked with CPC Finance on a project to convert a single residential property into a seven-bedroom, seven-bathroom House of Multiple Occupancy (HMO).

When Maninder bought the property in June 2021, it was a dilapidated three-bedroom semi-detached single residential property. It had been un-modernized, untouched for a long time and even had squatters in at one point. She worked with CPC Finance to obtain a short-term loan of £294,000, to purchase the property for £400,000.

She obtained planning permission for a two-story side extension after two months and then used £157,000 of her own money to convert the property into the HMO. The works took around six months to finish.

Now, the property has seven bedrooms and seven bathrooms and has been valued on a commercial investment basis at £675,000.  Working again with CPC Finance, she has refinanced the property with a 75% HMO mortgage of £506,250. She is renting the rooms to individuals for an average of £585 per month each and expects to be able to recover the money she has left invested in the property in around 18 months of rent.

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