£972k to fund a 15-bedroom HMO conversion in Basingstoke

An experienced developer planned to bring the vacant upper floors of a Basingstoke town-centre building into residential use while retaining the let shop below. We backed the project with a £972k refurbishment facility.

The four-storey freehold property already had planning permission for 15 en-suite HMO rooms across its three upper floors. The ground-floor retail unit was let on a five-year lease and would remain part of the completed scheme.

The borrowing company was newly established. Behind it was a developer with more than 20 years’ experience and a track record spanning 36 previous schemes. That experience, together with the planning consent and proposed refinance strategy, supported our decision to lend.

We structured the facility over 12 months, allowing for a planned six-month conversion programme followed by a further six months to arrange refinance.

Two viable refinance options were proposed for the exit: a buy-to-let mortgage against the HMO, or a semi-commercial mortgage across the whole building.

The facility gives the developer funding to progress the conversion, with time allocated within the term for both the works and the proposed exit.

The deal was delivered by Sally O’Loughlin, Jack Bruce and Sophia Panteli.

Have a similar refurbishment or mixed-use conversion to fund? Speak to our team or try our Quick Calculator for an indicative view.