At Scale Property Finance, we specialise in structuring tailored funding solutions for property investors, helping to maximise returns with minimal capital outlay. In this case, our expert approach enabled our clients to transform a standard residential property into a 9-bedroom House in Multiple Occupation (HMO)—all with the right funding strategy in place.
The Challenge
Our clients had a clear vision: to purchase and convert a residential home into a high-yielding HMO. However, they faced three key financial hurdles:
- High Upfront Capital Requirement – Funding was needed for both the purchase and significant refurbishment costs.
- Securing Favourable Loan Terms – Many lenders assess HMO conversions based on the original residential value, restricting available finance.
- Minimizing Cash Tied Up in the Project – The ultimate goal was to refinance post-development and recycle as much equity as possible.
Our Funding Approach
At Scale Property Finance, we don’t just source funding options—we structure deals that align with our clients' strategy for long-term success. Here’s how we made this project possible:
✅ 75% Loan-to-Value (LTV) on Purchase – We secured a highly competitive loan, reducing the clients' upfront capital investment.
✅ 100% of Build Costs Funded – Based on the projected property’s end value and the clients’ experience, we ensured they had full funding for the conversion.
✅ Strategic Lender Selection – We selected a lender that understands the true income potential of HMOs, subject to their criteria, ensuring the post-renovation valuation reflected its rental yield rather than just bricks-and-mortar worth.
The Outcome
💰 Increased Property Value – Our tailored finance strategy reflected the property’s new use and income potential, far exceeding the purchase price.
📈 Positive Cash Flow & High Yield – With 9 lettable rooms, the property became a top-performing asset in our clients' portfolio.
🔄 Smart Equity Release – The right finance structure supported them towards refinancing, withdrawing capital, and reinvesting this into their next project.
We’ll also be assisting our client with arranging the limited company buy-to-let mortgage allowing them to retain this property as a long-term rental asset.
Why Scale Property Finance?
At Scale Property Finance, we don’t just secure loans—we create funding strategies that help investors grow and scale their portfolios efficiently. Our deep lender relationships, market expertise, and commitment to delivering the most favourable terms mean our clients can move forwards with confidence.
If you're planning your next project, we’d love to hear from you. Whether it’s HMO conversions, development finance, or portfolio growth, we ensure your funding solution supports your goals.
