HMO Conversion - Bridging to BTL Refinance
£620,000 · 9 months works · exit onto 75% LTV specialist HMO BTL. An experienced landlord purchased a tired Victorian terrace for conversion to a 7-bed HMO.
The Client
Experienced HMO landlord adding to an existing portfolio
The Challenge
An experienced landlord identified a tired Victorian terrace suitable for conversion to a 7-bed HMO. Mainstream BTL lenders would not fund the property pre-licence; the borrower needed a single facility covering both purchase and conversion works.
Our Solution
Doulton arranged a £620k bridging loan funding the purchase plus a held-back works facility advanced in tranches across the 9-month conversion programme. The works specification was pre-agreed against Shawbrook's HMO BTL exit criteria - room sizes, fire-safety standards and EPC threshold - so the exit was de-risked from day one.
The Outcome
Conversion completed at month 9, HMO licence granted, all 7 rooms tenanted. Doulton arranged exit onto a 75% LTV specialist HMO BTL mortgage releasing equity above the bridge balance. Key highlights: Single facility for purchase + tranched works; Exit lender criteria baked into bridge terms; Specialist HMO BTL refinance also arranged by Doulton.
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