HMO Purchase - Singapore-Based Landlord, First UK HMO
£269,500 · 70% LTV · 5.35% fixed 5yr. A long-term Singapore resident buying their first UK HMO, a six-bedroom property in Leeds valued at £385,000, via a Ltd Co structure.
The Client
British national, 45, senior engineer, long-term Singapore resident.
The Challenge
Earning SGD 185,000 pa with no existing UK portfolio, the borrower wanted to purchase a six-bedroom HMO in Leeds valued at £385,000 at 70% LTV on investment value, with the HMO licence applied for. As a first UK HMO with no landlord track record and a non-resident borrower, this was difficult because HMO lenders typically require landlord experience or a professional management arrangement.
Our Solution
Doulton structured the application around a professional HMO management company already in place (let before purchase), which replaced the requirement for the borrower's own management track record. The specialist expat HMO lender used the room-by-room rental income assessment (£550 pm x 6 rooms = £3,300 pm gross) rather than a single-let equivalent. ICR passed at 145% (Ltd Co structure selected by client for tax reasons) with comfortable headroom.
The Outcome
HMO BTL mortgage at 70% LTV (£269,500) through a specialist expat lender. Ltd Co structure. Rate 5.35% fixed 5 years. HMO licence granted in month 2 of the mortgage. Professional management arrangement in place from day one, with no requirement for the borrower to visit the property. Key highlights: professional management accepted in lieu of landlord experience; Ltd Co structure arranged from outset; room-by-room rental income assessment maximised ICR; first UK property for a non-resident landlord.
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