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The Client’s Situation
A professional property investor came to Advocate Finance with the opportunity to purchase a portfolio of nine HMOs (Houses in Multiple Occupation). The portfolio was being sold below market value, making it an attractive investment. However, the client needed to secure finance across all properties within a tight timescale to take advantage of the deal.
The Challenge
Financing multiple HMOs simultaneously can be a complex process. Challenges included:
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Coordinating valuations on nine separate properties.
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Securing lending that recognised both the portfolio value and the below-market-value purchase.
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Meeting the vendor’s deadline for completion to avoid losing the deal.
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Structuring the borrowing efficiently across multiple units while keeping costs manageable.
The client’s main concern was ensuring the lender could process the case quickly enough and offer favourable terms without requiring unnecessary delays or additional hurdles.
Our Solution
Advocate Finance collaborated with a specialist lender experienced in lending for large HMO portfolios. We coordinated the application process to ensure all nine properties were assessed together, streamlining the underwriting and valuation process.
We also ensured the lender was comfortable with the below-market-value purchase structure. By demonstrating the client’s track record, experience, and the strength of the rental income across the portfolio, we secured agreement on terms that supported the full transaction.
Our team closely managed the communication between the client, lender, and solicitors, helping to keep the purchase on track within the required timeframe.
The Result
The client successfully purchased all nine HMOs at below market value, securing an attractive long-term investment. By using Advocate Finance, they benefitted from:
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One lender handling the full portfolio, simplifying the process.
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Acceptance of the below market value purchase, which increased equity from day one.
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A smooth completion within the vendor’s tight deadline.
This deal highlights how the right financial structuring can make complex, large-scale purchases achievable while maximising investor returns.
Client Feedback
“Having found a great BMV portfolio, I wanted to find a broker that could find the best finance solution for me, knowing that I specifically wanted to refinance out the discount asap and get my funds reinvested and back into play with another transaction asap.
How We Can Help You
If you are considering purchasing or refinancing a portfolio of HMOs, Advocate Finance can help you structure the deal most efficiently. We have access to specialist lenders who understand the unique challenges of HMO portfolios, from valuation through to completion.
We provide a FREE assessment of all our services. Please contact me directly for more information, or use the Get in Touch With Us Today feature at the bottom of this page.
