HMO Refinance in Cardiff Unlocks Capital for Investor’s Next Project
We recently supported an experienced property investor with the refinance of a newly refurbished 11-bedroom HMO, situated directly opposite the iconic Principality Stadium in Cardiff.
The Client’s Objective
Our client follows a proven investment strategy: acquiring properties, refurbishing them into high-quality HMOs, refinancing, and retaining them as long-term income-producing assets.
This latest project transformed a well-located property into a premium 11-bed HMO, with every room benefiting from its own en-suite bathroom, creating an attractive proposition for working professionals seeking high-quality city-centre accommodation.
The key objective was to maximise the amount of capital released through the refinance, providing the deposit required to move straight onto their next project.
The Challenge
While the refurbishment was complete and the property was ready for occupation, it had not yet reached full tenancy at the point the refinance was due to complete.
Ordinarily, this could have delayed the transaction and reduced financing options. However, following a positive assessment, the valuer confirmed the property’s market value and investment credentials, giving the lender confidence to make an exception and proceed before all rooms had been let.
The Solution
By securing the right lender and presenting the strength of the asset and the client’s track record, we achieved:
- 75% LTV against the investment valuation
- 5-year fixed rate at 6.14%
- Maximum capital release to support future acquisitions
- Completion achieved despite the property not being fully tenanted
The Outcome
The refinance unlocked significant equity from the completed project, allowing the client to retain a high-quality income-generating asset while securing the funds needed to continue expanding their portfolio.
