Funding available for properties with no HMO licence and no existing tenants. Lenders normally require the property to have a licence and sufficient rental income from existing tenants before lending. However, we have a unique product to assist the purchase, or remortgage of a property requiring light refurbishment, prior to having an HMO licence and prior to being let. Our lender will lend up to 65% of the property purchase price, or property value and allow refurbishments to take place.
Examples of acceptable refurbishments are:
• New kitchen(s) and/or bathrooms and shower rooms
• Replacement windows and doors
• Re-wiring and re-plastering
• Fire alarms and smoke detectors
• Full interior and exterior redecoration
• New carpets, curtains, fixtures and fittings
Refurbishment work needs to be completed within 6 months. Applicants will then need to obtain an HMO licence (if none exists) and also arrange assured shorthold tenancies for all rooms, bedsits, studios, or flats, after which a further drawdown of funds up to 70% of the improved property value can be applied for.
This mortgage is ideal for:
• Existing landlords looking to improve their property portfolio
• Ability to raise capital against higher property value
• Higher rental income for better yield
• Purchase potentially un-lettable property
• Avoiding expensive bridging loans
Properties can be virtually any size and configuration. To discuss your requirements, call us now on 0117 223 2050 and speak to an adviser today.