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We received an enquiry from a new broker who heard about us through one of our partners. Their client was a first-time landlord who was looking to purchase a House in Multiple Occupation (HMO) located above a commercial asset in Carlisle.
Unlike other lenders, we underwrite from day one. We were quick to send out one of our trusted valuers to the property. However, after receiving the valuation report, we stumbled upon a minor complication.
The asset had space to be utilised as a 10-bedroom HMO however, the current license was only suited to house 8 tenants. Before proceeding with the initial loan enquiry, our underwriter looked into all potential options to see whether we could increase the license to cover the maximum occupancy, increasing the potential income for the broker’s client. Upon discovering this could be done, we progressed and implemented the license change.
Within the later stages of the case, the client decided to purchase the property through a company. Initially, the client was going to complete the HMO purchase under their personal name. Therefore, the documents needed to be updated. MFS worked alongside the solicitor and completed all updates on the relevant documents within the same day.
Communication was key throughout this case. Our dedicated underwriter was able to maintain high levels of communication throughout the process and continuously support the client throughout their bridging loan. We ensured their paperwork was in line with the HMO licence.
Finding a lender who can provide finance for an HMO as a first-time landlord is very limited. We look at the bigger picture and took both the property and the applicant into consideration – valuing them on their individual merits. As a first-time landlord, the process was so transparent and seamless that the new landlord was keen to return to increase their property portfolio via MFS.