Funding 365 has completed a £510,000 light refurbishment loan enabling a landlord to acquire three houses in multiple occupation (HMOs) at auction.
The properties are located across Cumbria and Lancashire and comprise five, seven and eight-bedroom HMOs.
The 12-month facility is priced at 0.74% per month and provides 68% loan-to-value net on day one.
It also includes £110,000, released in arrears, to fund the full refurbishment cost of the seven-bedroom property.
FUNDED AND SELF-FUNDED WORKS
The works include adding en-suite bathrooms to every bedroom and renovating the communal kitchen.
The borrower funds the refurbishment of the remaining five and eight-bedroom HMOs using their own capital.
Once all three properties are renovated and tenanted, the planned exit is onto specialist buy-to-let mortgages.
ENHANCED REFURBISHMENT PRODUCT
The deal completes through Funding 365’s enhanced light refurbishment product, which offers bespoke facilities at up to 75% LTV net on day one.
It can also finance refurbishment works costing up to 40% of the property’s open market value.
The product is available on residential and semi-commercial properties across England and Wales, including HMOs, multi-unit freehold blocks and purpose-built student accommodation.
REGIONAL LENDING APPETITE
Dhivian Pirabaharan (main picture), underwriter at Funding 365, says: “This facility is a great example of how versatile our products are. Here, we were able to combine auction finance with both funded and self-funded refurbishment to create the right solution for our borrower.
“Brokers are sometimes surprised to learn that we’re not a Southern-centric lender. In reality, our loan book is spread right across England, Wales and Northern Ireland. No two days are the same as an underwriter at Funding 365.”
