Purchase of Tenanted 6-Bed HMO Requiring Article 4 Compliance Works in Oxford
£575,000 · 8 months · 0.91% pm. An investor purchased a tenanted 6-bed HMO in Oxford that required works to achieve full Article 4 compliance, including fire door upgrades, additional fire alarm points, and emergency...
The Client
Investor
The Challenge
An investor purchased a tenanted 6-bed HMO in Oxford that required works to achieve full Article 4 compliance, including fire door upgrades, additional fire alarm points, and emergency lighting. The existing HMO licence had expired and standard HMO mortgage lenders would not advance until compliance was confirmed.
Our Solution
Doulton advanced £575,000 against the tenanted property, accepting the compliance works as a condition. Works were completed with tenants in situ within six weeks. HMO licence was reissued by the council at month three.
The Outcome
Property purchased with all existing tenants retained. Compliance works completed without void. HMO specialist mortgage redeemed the bridge at month seven at a valuation reflecting the improved compliance status. Key highlights: Tenanted HMO accepted with compliance works pending; Works completed in 6 weeks with no tenant disruption; HMO mortgage exit at enhanced valuation.