101671 - £417,750 loan against a two bedroom flat in London
101671 - £417,750 refurbishment loan against a two-bedroom flat in London
Loan amount: £417,750
Term: 12 months
Security: 1st charge
Product type: Refurbishment
TAB provided a £417,750 loan for the refurbishment loan of an end terrace house that’s divided into two maisonettes, the lower ground and ground floor. The top floor is owned by another tenant.
The borrowers, who are repeat clients of TAB, are two brothers in a joint venture. They plan to convert the property into a House in Multiple Occupation (HMO) consisting of four self-contained units with en-suite facilities. They will rent out the property under the Local Housing Allowance, which requires the units to be at least 10 sqm in size, have an en-suite, and have their own kitchenette.
The loan from enquiry to completion took just over six months due to the challenges presented by the vendor. However, TAB persevered and kept in regular communication with the borrowers to ensure that when they needed financing TAB had the solution ready.
Once the property is let, the borrower will refinance it onto a long-term Buy-to-Let (BTL) product as an exit strategy.
This article is for information only and does not constitute advice or a personal recommendation. As with any investment your capital is at risk and you should seek advice concerning suitability from your investment adviser.
The borrower negotiated an extremely competitive price to purchase a maisonette in Wandsworth. This allowed them to complete work to convert it into a four-bedroom HMO. The borrower is extremely experienced and we look forward to our continued partnership with them. Nick Russell, Sales Director