£1.37M Property Acquisition & Heavy Refurbishment, London
We successfully provided a £1.37 million property acquisition and refurbishment loan for the purchase and transformation of two freehold properties in South West London.
Overview
We successfully provided a £1.37 million property acquisition and refurbishment loan for the purchase and transformation of two freehold properties in South West London. This deal demonstrates our ability to fund high-value refurbishment projects with a clear rental exit strategy in high-demand locations.
The Challenge
The borrower sought funding to acquire two three-bedroom terraced houses and convert them into six-room HMOs (Houses in Multiple Occupation) under Permitted Development Rights. The challenge was structuring the finance to accommodate both property acquisition and staged refurbishment drawdowns, ensuring seamless execution while keeping interest costs manageable.
Our Solution
We structured an 8-month loan with a combination of upfront and staged drawdowns to support both acquisition and refurbishment:
✅ Initial Drawdown: £792,000 to fund the property purchases.
✅ Staged Drawdowns: £480,000 to support the phased conversion into HMOs.
✅ Rolled-Up Interest: Allowing flexibility in cash flow management.
✅ Optimised Leverage; Day 1 Net LTV: 70%, Gross LTC: 83% and Gross LTGDV: 54%
The Outcome
🔹 £1.37M facility secured with flexible drawdowns.
🔹 Refurbishment funding structured to optimize liquidity management.
🔹 Post-conversion valuation (GDV) of £2.54M, demonstrating strong uplift.
🔹 Exit via a 10-year lease to a registered housing provider, ensuring long-term stability.
Why This Matters
This transaction highlights our ability to fund complex acquisition and refurbishment projects with structured drawdowns that align with the development timeline. It also showcases our expertise in supporting HMO conversions, which are increasingly popular among investors seeking high-yielding assets.
If you’re looking for bespoke financing solutions for property acquisitions, refurbishments, or HMOs, get in touch with our team today.