An experienced landlord won a vacant three-bed semi at auction in Harrow and needed fast funding to complete their purchase, with additional cash required to convert it into a six-bed HMO. The purchase price was £484,000 with a projected GDV of £1,000,000.
Lendhub provided a £664k medium refurbishment facility at 75% Day One LTV (66.45% LTGDV, 83.5% LTC) on a 12-month term, enabling acquisition and the HMO conversion.
Key Challenges and Solutions
Auction Timeline
A four-week completion window required fast coordination across all professional teams. We rean an early value sense-check that allowed legal processes to progress in parallel with valuation and asset management, removing waiting time.
This efficient coordination also contributed to the completion being achieved in just six working days post-valuation, meeting the auction deadline.
Value Certainty at Higher Leverage
The requirement for 75% day one and 83% LTC required strong confidence in both the purchase value and HMO end values to justify fastracking this deal through to completion.
Our solution involved a thorough value analysis, reviewing local sales, HMO comparables, and rental expectations to support the LTGDV and maintain the target leverage.
Outcome
Completion took six working days post-valuation and AM. We delivered a £664k medium refurbishment facility over 12 months at 75% Day One LTV to fund the purchase and conversion to a six-bed HMO. The planned exit is a refinance onto a long-term buy-to-let mortgage.
Takeaway
- Speed towards completion: We can co-run legals with valuation when the timelines demand it, like in auction purchases.
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