Loan Case Study 4:

Location: Bristol

LTV: 75%

LTGDV: 50%

Rate: 1% per month

Term: 12 months

Loan Purpose: HMO Conversion

Exit: Refinance onto Commercial Mortgage

The Opportunity

SevernRise was approached by an experienced property investor seeking funding to convert a 3-bedroom end-of-terrace house in Bristol into a 6-bedroom licensed HMO. The borrower had secured planning permission for the works and intended to reconfigure the property to maximise rental yield in a high-demand area.

Our Solution

We provided a 75% Loan-to-Value facility secured against the current market value, with the loan representing 50% of the projected Gross Development Value of £550,000. Structured over a 12-month term at a fixed rate of 1% per month, the facility allowed the borrower to complete the works and service interest monthly without delaying the programme.

Exit Strategy

The borrower’s exit will be via a commercial refinance once the conversion is complete and the property is fully tenanted. The experience of the borrower, combined with the strong local demand for HMOs and the planning already in place, gave us confidence in the viability of the exit within term.

The Outcome

Our responsive and pragmatic approach enabled the borrower to secure funding quickly and commence works without delay. This case demonstrates SevernRise’s commitment to backing experienced investors with well-structured projects and a clear, deliverable exit.