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Shawbrook provides refurbishment loan for six-bed HMO conversion

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  • 17/09/2020
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Shawbrook provides refurbishment loan for six-bed HMO conversion
Shawbrook has provided a bridging loan to fund the conversion of a single-family dwelling into a six-bedroom home in multiple occupancy (HMO).

 

The bank offered the £261,000 interest-only refurbishment loan after it was approached by its broker partner Go Finance. The loan was issued on a nine-month term at 75 per cent loan to value (LTV). 

Shawbrook added the arrangement fee on top of the maximum LTV, rather than deducting it from the gross loan resulting in a higher net loan amount for the client.   

The property built in 1910, was noted as ‘significantly dated throughout’. Works were needed to modernise the property, including damp, external joinery repairs, potential ceiling asbestos, leak damage and the replacement of an old boiler. Upgrades were also required to improve the EPC rating.   

The client secured the exit route to a term mortgage, which enabled him to recover his deposit and the refurbishment funds spent, as the value of the property had increased by almost 40 per cent.   

Neil Moorhouse, managing director of Go Finance, said: “The process with Shawbrook from quotation to completion is extremely straight forward with market leading pricing which enables Go Finance to offer best in market products.  

Shawbrook are an extremely helpful bank on all levels and offer great support to the intermediary marketplace.” 

Gavin Seaholme (pictured)head of sales property at Shawbrook Bank, added: “Working with expert broker partners and delivering a good customer journey and outcome are key to providing bridging solutions.  

Heavy refurbishment is a key product in this market as it offers customers the opportunity to maximise an assets potential.” 

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