Posts Tagged 'Bridge to Let'

Refurbishing your HMO

Unlocking the Benefits of a Successful HMO Refurbishment

HMO (House in Multiple Occupation) properties can be a great investment for landlords looking to obtain a higher yielding rental income. However, over time, these properties can become tired and in need of a refurbishment.

A well-planned and executed refurbishment can not only improve the living conditions for tenants, but it can also increase the property’s value and rental potential.

The Benefits of Refurbishing a HMO Property

  • Increased rental income: A refurbished property is likely to command higher rental prices than a tired, outdated property.
  • Attracting higher-quality tenants: A refurbished property is more likely to appeal to professional, reliable tenants who will take care of the property.
  • Increased property value: A refurbished property is more likely to hold its value, and may even increase in value over time.
  • Improved living conditions for tenants: A refurbishment can improve the living conditions for tenants, making the property a more pleasant place to live.

Key Considerations for a Successful HMO Refurbishment

  • Planning permission: Depending on the extent of the refurbishment, planning permission may be required. It’s important to check with your local council before starting work.
  • Health and safety regulations: It’s important to ensure that the refurbishment complies with all relevant health and safety regulations to protect tenants and contractors.
  • Building regulations: The refurbishment must comply with all relevant building regulations to ensure the safety and structural integrity of the property.
  • Budget: It’s important to have a clear budget in place to ensure that the refurbishment is completed within financial constraints.

The Refurbishment Process

  • Assessing the property: Before starting the refurbishment, it’s important to assess the property to identify any issues that need to be addressed.
  • Designing the refurbishment: Once the issues have been identified, the next step is to design the refurbishment to address these issues.
  • Obtaining quotes: Once the design has been finalised, it’s important to obtain quotes from contractors to ensure that the refurbishment is completed within budget.
  • Completing the refurbishment: Once the quotes have been obtained, the refurbishment can begin. It’s important to regularly check on the progress of the work to ensure that it is completed on time and to a high standard.

Finance Options for Your Refurbishment

If the refurbishment is going to take more than a month, there is structural work or you are changing the planning usage of the property it is highly likely you will need to tell any existing lender in advance what your plans are.

The lender may allow the work or they may tell you to get finance from elsewhere and repay your current mortgage.

You could either go down bridging finance route, a bridge to let or even a light refurbishment buy to let.

There are many options depending on the work and how long it will take.


Refurbishing a HMO property can bring many benefits, including increased rental income, attracting higher-quality tenants, and improved living conditions for tenants.

However, it’s important to carefully consider key factors such as the right type of finance, planning permission, health and safety regulations, building regulations, and budget to ensure a successful refurbishment.

By following a clear process, landlords can create a property that is both valuable and appealing to tenants.

To find out what your options are please contact us.

Bridge to Let

What is it?

It’s two products with the same lender. The first part is a short term/bridging loan to enable you to purchase the property and refurbish it. Once complete the second part allows you to take out a long-term mortgage against the increased value and rent.


• Purchase Price £200,000 – initial loan £150,000
• Cost of works £30,000
• After works value £300,000 – BTL mortgage of £225,000 at 75% LTV
• Term to complete works 2 months
• After works rental £15,000 pa


Purchase property with a loan of 70% -75% of current value
Complete the work with your own funds
Apply for the BTL mortgage 2 weeks before work is completed
BTL mortgage agreed subject to updated valuation
Valuation carried out and confirms £300,000 value
New mortgage agreed at 75% – 80% of increased value

Contact us now to see how we can help you.

All products are aimed at UK business BTL landlords and subject to underwriting. Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured upon it.

Searchlight Finance Ltd is a broker not a lender.

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We are a credit broker not a lender.

Searchlight Finance Ltd is registered at 98, King Street, Knutsford, Cheshire, WA16 6HQ. Company Register number is 07929050.

Authorised and Regulated by the Financial Conduct Authority. Our FCA registration number is 743220. You can check via www.register.fca.org.

We are registered with the Information Commissioner’s Office, Z3109319 and you can check via www.ico.org.uk.

We conduct both regulated and unregulated business and therefore not all products provided through us are regulated by the Financial Conduct Authority.

We source finance from the whole of market and may receive commissions that will vary depending on the lender, product, or other permissible factors. The nature of any commission model will be confirmed to you before you proceed.

Member of National Association of Commercial Finance Brokers (NACFB).