Phone link
Phone link

Live chat

Purchase and finance of a 32 Bed Student HMO

by Peter Davies on 16th February 2018

scaffolding

Purchase price: £560,000
Loan: £618,556 (gross)
Arrangement Fee: 3% (this is high and may put people off)
Rate: 0.87% (this isn’t high and won’t put people off!)
Term: 12 months

Adviser: Peter Davies

My clients had exchanged contracts on a building with a 10% deposit. The transaction had a delayed completion date to allow construction work to be completed which would turn the building into a 32 bedroom student HMO (House of Multiple Occupancy).

While a large amount of work had been carried out, the building wasn’t finished for the originally scheduled completion date. As a result, the limited company purchasing the building required funds to complete the purchase whilst also requiring additional funds based on the uplifted value of the conversion work carried out to date.

I approached one of Coreco’s bespoke short-term lenders where we have direct access to the principals and agreed on a 12-month loan facility in excess of 100% of the purchase price to enable the purchase to complete with additional funds for costs and interest.
The 12-month facility enabled the clients to complete the purchase and not lose their deposit – also giving time to complete the conversion works before we refinanced to a long-term 10-year interest-only facility.

Interested in an HMOs? Get in touch with Peter here.

peter

Written by Peter Davies

Partner

Starting his career in property and finance with Connells Estate Agents more years ago than he cares to remember, Peter was first employed as a sales negotiator before moving across into the Financial Services arm as a mortgage adviser. During this time he studied for, and passed, all three elements that make up the FPC qualification and in addition gained the CeMAP qualification. After 5 years with Connells he joined John Charcol in 2002. Based in the Canary Wharf office he remained with Charcol until joining Coreco in August 2009 shortly after the business was established. Better known as Taff, he now works within the Specialist team here at Coreco Towers dealing with the extremely varied requirements of their many clients.

Read more posts by Peter
DNA Shape DNA Shape

In case you missed it..


CorecoDNA

Overlay image

Personal

We know that all our clients are unique, and therefore the finance you require needs a different approach. We pride ourselves on providing a client focussed journey built around your needs and goals.

Overlay image
Overlay image

Professional

Our team always expresses their professionalism through their authenticity, high level of work ethic, and can-do attitude. We always find the best way for our clients to succeed.

Overlay image
Overlay image

Progressive

Our progressive and forward-thinking outlook allows us to guarantee an exceptional level of innovative advice and service, ensuring an effortless, client-centric journey in the ever-changing financial world.

Overlay image

CorecoContact

Want to talk to us?

Fill out the details below to start a conversation with one of the team.

    https://www.corecocommercial.co.uk/privacy-policy

    CorecoReviews

    Advice you can trust