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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.

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The Situation

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.

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The Solution

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.

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The Benefit

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

The Result

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

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