Unlicensed HMO problem solved for Overseas-based Investor
Professional landlord needing to raise capital to refurbish an unlicensed HMO.
Tuscan Capital provided a £1.5million bridge loan to a property investor with a large portfolio of north London HMOs. He is a British citizen based in New York from where he manages his business, visiting the UK only occasionally.
The money was raised against a property comprising two adjoining semi-detached houses which have been split into 16 self-contained flats. The property was significantly down-valued due to its poor condition and the fact the HMO licence had not been granted.
Tuscan Capital was able to structure a deal which enabled the borrower to drawdown the urgently-required cash under an agreement which obligated him to bring the properties back to the required condition, following which retrospective council consents could be obtained.
Tuscan Capital is overseeing the refurbishment project and monitoring the council consent process to ensure the property’s condition is compliant and ultimately re-mortgageable through a mainstream Buy-to-Let facility.