20% Higher Valuation for a Bridging-to-Buy-to-Let Exit
Case Summary
After completing the refurbishment of a six-room HMO in South West London, the borrowers needed a long-term buy-to-let mortgage to exit their bridging finance. By placing the case with a lender better suited to specialist HMO valuation, a revised valuation of £880,000 was achieved and a mortgage offer of approximately £660,000 was secured.
Purchase / Property Value
£880,000
Loan Amount
£660,000
Total Facility Amount
Deposit / Client Contribution
Loan to Value (LTV)
75%
Finance Term
Case / Finance Type
Buy-to-Let
Case Circumstances
The borrowers had completed the refurbishment of a six-room HMO in South West London and needed a long-term buy-to-let mortgage to repay their existing bridging finance. The case had previously been submitted through another broker, but the resulting valuation did not support the required bridge exit or adequately reflect the completed HMO. The original purchase price had been approximately £580,000. A revised application was then prepared with a lender and valuer better suited to specialist HMO cases. The new valuation reached £880,000 and the maximum mortgage offered was approximately £660,000 at 75% LTV.
Main Challenges
Previous Valuation Did Not Support the Exit
The case had already been submitted through another broker, but the valuation achieved at that stage did not provide sufficient support for the borrowers’ required exit from their bridging finance.
Specialist HMO Valuation Required
The property was a completed six-room HMO, so the case required a lender and valuer with suitable experience in assessing specialist HMO properties.
Valuation Needed to Reflect the Completed Property
The valuation needed to properly reflect the property’s final configuration, condition and rental potential following refurbishment, rather than being assessed in a way that understated its position.
Browse other Mortgage Case Studies
Case Summary
After completing the refurbishment of a six-room HMO in South West London, the borrowers needed a long-term buy-to-let mortgage to exit their bridging finance. By placing the case with a lender better suited to specialist HMO valuation, a revised valuation of £880,000 was achieved and a mortgage offer of approximately £660,000 was secured.
Purchase / Property Value
£880,000
Loan Amount
£660,000
Case Summary
A property investment company secured a heavy-refurbishment facility to purchase and convert a £310,000 Hampshire property into a six-bedroom, six-en-suite HMO, with funding structured around the acquisition, works programme and projected £500,000 GDV.
Purchase / Property Value
£310,000
Total Facility Amount
£317,220
Case Summary
An experienced property company purchased a Hampshire property at auction for approximately £198,000 and secured a combined purchase and refurbishment facility to support its conversion into an HMO. Around £100,000 was allocated to the refurbishment works, enabling the project to proceed towards a planned buy-to-let refinance.
Purchase / Property Value
£198,000
Total Facility Amount
£236,000
Case Summary
Two directors purchased a £627,500 single-let investment property through a newly established SPV limited company. Despite the new SPV structure, one director being a first-time landlord and the property’s higher flood-risk profile, a suitable lender was identified and the clients were able to proceed with the purchase.
Loan Amount
£470,625
Purchase / Property Value
£627,500
Case Summary
A couple buying their first home required a £213,750 mortgage on a £225,000 property with only a 5% deposit. Although several factors narrowed their lender options and made the required borrowing difficult from an affordability perspective, careful lender selection enabled them to secure the full amount with a competitive high-street lender.
Loan to Value
95%
Deposit
£11,250
Case Summary
Two applicants on visas were looking to purchase a £250,000 property with a 5% deposit. Both had lived in the UK for less than three years, worked on fixed-term contracts and had limited UK credit history.
Loan to Value
95%
Deposit
£12,500
Have a similar scenario?
Let’s talk it through.
Let's Find the Right Mortgage for You
Amir Shojaee
Director and Founder of PBSBrokers
CeMAP Qualified Mortgage Adviser
At PBSbrokers, we offer a free initial consultation to review your income, deposit, affordability, credit profile, and mortgage objectives. Whether your case is straightforward or more complex, we'll help you understand the options that may be available and guide you through the next steps.