London Residential Refurb and Let

London 3 bed (1.3m) conversion to 6 bed (1.8m) conversion

COMPLEXITY SCORE: 6/10

THE CHALLENGE

A London property valued at £1.3M was burdened by existing first and second charges totalling £550K. The opportunity was to take control of the property, clear the existing debt and convert the single dwelling into a high-specification 6-bedroom HMO, targeting a completed value of £1.85M. The challenge was finding a lender prepared to fund the restructure and the works around the property's future value.

THE COMPLEXITY

• £550K existing debt across two charges

• Significant conversion from 3-bed single dwelling to 6-bed HMO

• Specialist lender required for the proposed works and exit

• £600K funding requirement including debt clearance and works

• Exit dependent on a £1.85M post-completion valuation

  
  

THE STRATEGY

£1.3M CURRENT VALUE↓£600K FIRST-CHARGE BRIDGEClear existing charges + fund works↓3-BED → 6-BED HMO↓£1.85M COMPLETED GDV↓LONG-TERM BTL REFINANCE

Lender: MT Finance | Initial LTV: ~46%

THE RESULT

Always Wright identified the opportunity within the existing debt structure and approached MT Finance, a lender capable of understanding the property's underlying potential. A £600K first-charge facility cleared the existing charges while providing funding for the conversion and associated costs. The property was successfully transformed into a high-specification 6-bed HMO, achieving the targeted £1.85M GDV. Upon completion, we executed the planned exit onto long-term BTL finance, repaying the bridge and leaving the client with a significantly improved, income-producing asset and capital available for future opportunities.

We didn't just refinance the debt. We transformed the asset.

KINGS OF COMPLEX

Existing debt. Major conversion. £550K funding requirement.

One structure. One strategy. £1.85M end value.