A specialist lender has provided £510,000 to finance the purchase and refurbishment of three houses in multiple occupation (HMOs) across Cumbria and Lancashire, following their acquisition at auction.
Funding 365 structured the 12-month facility at a monthly interest rate of 0.74%, offering 68% net day one loan-to-value (LTV) alongside £110,000 in arrears to cover the full refurbishment costs of a seven-bedroom HMO property.
The refurbishment programme for the seven-bedroom property includes installing en-suite bathrooms in each bedroom and renovating the communal kitchen. The landlord plans to refurbish the remaining properties—a five-bedroom and an eight-bedroom HMO—using private capital.
Bridging finance structure
The transaction was completed under the lender’s enhanced light refurbishment product, which provides facilities up to 75% net day one LTV with works funding of up to 40% of a property’s open market value. The product is available for residential and semi-commercial assets across England and Wales, including HMOs, multi-unit freehold blocks and purpose-built student accommodation.
This deal follows other recent bridging transactions in the market, as landlords continue to utilise short-term finance for portfolio expansion. The structure combines auction finance with both funded and self-funded refurbishment elements.
According to Dhivian Pirabaharan, underwriter at Funding 365, the lender’s loan book extends across England, Wales and Northern Ireland, rather than concentrating in the South of England.
Upon completion of the refurbishment works across all three properties, the landlord intends to let the units before refinancing onto a specialist buy-to-let mortgage. The transaction reflects ongoing activity in the HMO sector, where specialist lending products continue to support property investment strategies in regional markets.
