The situation
The classic trap is buying with a bridge, converting, then discovering the refinance lender wants 6 months seasoning, full Article 4 compliance, and a room-count that doesn't match the plans. Suddenly you're paying bridge rates for another year.
How we approach it
We arrange the bridge and pre-agree the exit lender before drawdown. The bridge is sized against post-works value, the refinance lender is chosen for the specific configuration (5-bed sui generis, licensed, etc.), and works are scoped to hit both.
What that looks like in practice
- Bridge sized on 70-75% of post-works value where evidenced
- Refurb tranches released against QS or broker sign-off
- Exit lender pre-vetted — no surprises at refinance
- Article 4 areas mapped, licensing timeline built in
- Portfolio stress-testing if this is one of several
Typical timeline
- AcquisitionRefurb bridge drawn against purchase price + works.
- Works3-6 month conversion, licensing application submitted.
- RefinanceSpecialist HMO mortgage drawn once let, bridge redeemed.
Common questions
Do I need planning permission for an HMO?
It depends on room count and whether you're in an Article 4 area. 3-6 bed can often go under permitted development elsewhere; sui generis (7+) always needs full planning.
How is the refinance valuation done?
For licensed HMOs, on rental yield (investment method), not bricks-and-mortar. This is why an unlicensed valuation looks weak — plan for the licensed valuation.
Can you fund the works too?
Yes — refurb bridges include works tranches. We agree the schedule up front and release funds as stages complete.
Send the deal and the works schedule
We'll model the bridge + refinance together so you know the true cost before you commit.