Updated: Aug 17, 2022
The client purchased with a bridge and converted HMO into a 6-bed using her own funds. They then started an exit with a well-known HMO lender, but the company stopped lending due to Covid-19.
Initial loan of £750,000
75% LTV, including a 10% mezz element
Blended rate of 0.99%
Completed within 6 weeks
Current lender refused to provide an extension and was charging hefty interest and fees. The HMOs were being sold to the housing association that was renting them, and the client just needed a small term while this was finalised.
The valuation didn’t come in as the client expected, but we still released 75% day one (mezz element), which was a pure ‘like for like’ to allow the client time to complete the sale.