£320,000 HMO conversion bridging finance in Bristol

Location: Windmill Hill, Bristol

Loan Amount: £320,000

Finance Category: Development Finance

The Story

Existing clients of Fox Davidson that specialise in the conversion of HMOs in Bristol approached us with a new funding need.

Our clients required a loan of 70% on a tired and outdated 3-bedroom terraced property in Windmill Hill, Bristol.

Their plan was to spend £40,000 renovating the property, adding a fourth bedroom, and then wished to retain the property and refinance on to an HMO buy-to-let mortgage.

The Challenge

The property was going to push the top price for property values in the area, and within throwing distance of a local pub.

Some lenders will not lend if a property is near a public house, and some lenders are cautious about GDVs that push above other sold prices.

To overcome these challenges, we liaised with some reputable agents in the area, showed them the CGIs for the finished property, along with details of the high-quality finishes.

They agreed with our client’s GDV figure and we were able to provide that information to both the lender and their surveyor.

The Solution

Fox Davidson placed the lending with one lender that took care of the bridging finance and the buy-to-let exit.

There could be no issues with the financing as the lender agreed on all terms upfront.

The initial valuation took care of the current value and the after works value plus the expected rental amount.

The surveyor did their own independent report but aided with the information we provided them they agreed with our client’s post-works valuation.

The client completed the works within three months and the post works valuation came back as expected and they exited on to a three-year fixed-rate buy-to-let product and were able to borrow 75% of the post works value, thus taking back some of the money spent on the works to the property.


Fox Davidson

Fox Davidson is an award-winning team of property finance consultants. To discuss your property funding requirements, please email enquiry@foxdavidson.co.uk or call us on 0117 989 7950.

Wesley Davidson

Director & Property Finance Consultant

About: Wesley has been in the industry for 20 years and has a wealth of knowledge in all areas of property finance. His real passion is working with property developers on the funding of development sites. His work ethos is to constantly gain more knowledge in order to better himself and offer more to clients and to be contactable at all times, this sets him apart from his peers.

Favourite Film: Last of the Mohicans

Quote: “In complete darkness we are all the same, it is only our knowledge and wisdom that separates us. Don’t let your eyes deceive you.” – Fat Controller