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First time landlord purchases 8 bed HMO - find out how we structured this case

A buy-to-let case study


The client was a homeowner and higher rate taxpayer looking to purchase a first buy-to-let property. The purchase was to be completed in the name of a newly formed SPV and the property in question was an 8-bed licensed HMO.

Borrowing was required at 75% LTV, with a £525,000 loan on a property valued at £700,000.


The client felt that by purchasing an HMO this would increase rental yield and the return on his investment. However, he also had some concerns as to whether his plans would work out in the long term and had therefore requested a product with no Early Repayment Charge so that he could monitor the situation and have the ability to sell the property should the need arise.


It had come to light that a number of lenders had been approached with this application, funds had been spent on valuations etc. and the case had been declined on several occasions. The vendor was now becoming impatient and had requested completion within eight weeks.


We worked closely with the broker, the client and the lender, which has an onsite underwriter at Brightstar, to make sure the application was actioned promptly and we were able to achieve successful completion within the eight week deadline.


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