Refinancing of a HMO Corporate Letting to a Local Authority

At West One, our specialist underwriters assess each case on its own merit which means that we can consider applicants who are planning to lease their property to a council, housing association on third-party organisations.

This case study demonstrates how our flexible approach enabled us to refinance a HMO property that a landlord was renting out to a local authority. 

 

  • Loan value
    £135,000
  • LTV
    62%
  • Property value
    £220,000
  • Loan term
    25 years

 

The client

Our client was an accountant who looking to refinance a buy-to-let property that had been converted into a HMO, freeing up funds to purchase onwards buy-to-let properties.

The client owned one buy-to-let, a 3 bed HMO, that was rented out to a local authority to house vulnerable tenants on a corporate letting arrangement. Many lenders had been reluctant to finance a property that housed vulnerable tenants.

Unlike many other lenders West One have a flexible approach to the type of tenants accepted and have appetite for corporate lettings to local authorities.

By allowing corporate letting to vulnerable tenants we were able to assist the landlord with a £135,000 loan.

Result

The refinance of the clients existing buy-to-let property allowed our client to grow their portfolio with additional buy-to-let properties.