HMO Through Limited Company - Six-Bed Licensed Property in Birmingham
£365,000 · 25 years · 5.85% fixed 5 yrs. A property investor was purchasing a licensed six-bed HMO in Birmingham through his existing property SPV.
The Client
Property investor
The Challenge
A property investor was purchasing a licensed six-bed HMO in Birmingham through his existing property SPV. HMO mortgages through limited companies require lenders comfortable with both the HMO property type and the corporate borrower - a narrower market than personal HMO mortgages.
Our Solution
Doulton identified lenders operating in the limited company HMO space and selected the most competitive. The SPV's existing property portfolio (two other properties) demonstrated a track record. The HMO licence was in place and verified. All six rooms were tenanted at purchase.
The Outcome
HMO purchased through the limited company. All six rooms producing income from day one. Gross rental yield: 9.2% on purchase price - materially above the Birmingham single-let market. Company portfolio now comprises three properties. Key highlights: Limited company HMO mortgage placed - specialist market navigated; Existing SPV track record supported application; Gross yield of 9.2% - well above Birmingham single-let average.
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