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- How to guarantee your HMO end value - and a market update
How to guarantee your HMO end value - and a market update
All killer no filler
Shazad Ahmed
January 31, 2025
HMO conversions are all the rage right now. But how can you get your end value confirmed, before you even buy the property?
The answer?
By using short term / bridging finance.
Take control of your HMO projects valuation from bridging to remortgage
One of the useful things about bridging finance is that you get the opportunity to select a valuer from the lenders panel
Here's the trick: Instead of just picking the cheapest quote, do your due diligence.
Research the firms and, crucially, ensure the firm is also on the panel of the lender you plan to use for your long-term HMO mortgage.
Why is this so smart?
By using the same valuer for both your bridging finance and your HMO remortgage, you're essentially getting a 'preview' of your future valuation.
If you've completed the agreed-upon works, the valuer will be hard-pressed to significantly change their initial assessment.
This consistency is invaluable, especially for HMOs where income-based valuations are key.
This strategy reduces the risk of valuation surprises at remortgage & It’s a smart move for any savvy HMO investor.
Work with a broker that knows
Property Market update - by Shifa Nasir, Director @ Savoys Real Estate
Despite recent challenges among the interest rate fluctuations and the staff duty deadline on market stability, there's definitely been some positive movement and we have seen a record breaking start to January as the average asking price for property has risen by 1.7% which is definitely showing a renewed confidence among sellers within the market and actually has resulted in increased market activity.
So with a record number of sellers entering the market, buyers have seen probably the largest selection of properties within over a decade and because of that we're seeing more buyer inquiries and agreed sales and this has significantly increased since last January.
So we're definitely on an upwards trajectory, it's a great time to be exploring the market so if you are looking to sell your home or looking to buy a home please do get in touch with me today.
Lending updates
MS Lending offer 85% refurb bridging. That’s 85% gross, minus interest it’s typically 70-73% net day one. You need to have 2 x BTLs in the background
Apex Bridging are a lender that lend up to 85% open market value - ideal if you are buying genuinely below market value. They will now also (if the discount is big enough and numbers work out) then they will also allow their loan to cover the stamp duty costs. INSANEO