Securing Flexible Finance for a Complex Investment Group of First-Time Landlords

9 shareholders, one complex structure – smooth HMO finance secured at £111,375.

The Challenge

An investment group made up of 9 shareholders and 4 directors approached us with a complex LTD company structure. Every member of the group was a first-time landlord, which made the process more daunting for them and more difficult with lenders. Most lenders don’t lend to companies with such a large number of shareholders, creating unnecessary hurdles and leaving the clients unsure if they could move forward.

Our Solution

At Cornerstone, we looked beyond the complications and focused on finding a lender who could see the bigger picture. We identified one who was willing to disregard any shareholding below 25%. This meant that only the four directors needed to be included in the application, immediately simplifying the process. Just as importantly, the lender was open to supporting first-time landlords with an HMO purchase, giving the group the confidence they needed to proceed.

The Outcome

The group successfully secured finance on a property valued at £148,500, with a loan amount of £111,375. What initially seemed like an overwhelming challenge turned into a smooth and straightforward process. For the shareholders, this was their first step into property investment, and the relief of securing finance so efficiently was clear. They described the experience as seamless and left us a five-star review in recognition of the tailored support they received.

This case, managed by Ben Gauci, Commercial Manager at Cornerstone Commercial Finance, shows how the right approach can turn complexity into success. By finding flexible solutions, we helped a first-time landlord group move forward with confidence, and they have since returned to Ben for their second investment property.