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Game Changer case study: Single residential property to 8-bedroom HMO

by | Sep 28, 2022 | Case Study, Clients

The investor owned a mid-terrace, three-bedroom single residential property in Greenford, West London, originally worth £425,000. They had obtained planning permission for a seven-bedroom HMO. Working with CPC Finance, the investor secured an initial short-term loan of £456,664 which included the refurbishment funds from Octane Capital to do the conversion works on the property.

Instructing Savoys Properties as part of the Game Changer process, the investor started to convert the property in August 2021 with a single-storey extension, loft conversion, and interior reframing to reconfigure the property. They finished the works in June of 2022, which cost £240,000. At that point, the property was a seven-bedroom HMO with ensuite bathrooms.

Together with Savoys Properties, the investor went through full Sui Generis planning permission to gain permission for an eighth bedroom. The local Council did not grant permission, but Savoys went to appeal, which they won. Then, the investor was able to use the eighth bedroom with an en-suite bathroom.

The final GDV on the property was £845,000, CPC Finance arranged a term HMO mortgage for the property of £641,671.88 with an LTV of 75% from Shawbrook Bank. Now, the property brings in a total of £6,000 in monthly rent.

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