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Are you interested in converting a house into a HMO, but obtaining planning permission is delaying you from completing on the purchase of the property?
While converting a standard house (C3 planning) into a house of multiple occupancy (C4 planning) falls under permitted development rights, there are certain instances where this right is removed. In the instance where an Article 4 Directive is in place or you plan to convert the property into a 7+ bed HMO then full planning permission will be required.
This planning process can be lengthy and as such could cause delays to the purchase.
The good news is there is a potential solution.
We have access to lenders who can lend the funds to initially acquire the property without planning permission.
Once the purchase completes, you then have the time and reassurance you need to obtain the required planning permission without delaying the purchase transaction.
Once planning permission is granted, these lenders can then fund up to 100% of the works allowing you to convert the property into a HMO.
How do loans for converting a house into a HMO work?
Obtaining planning permission can be a lengthy process and if you try to obtain this prior to purchase it could result in the vendor or lender pulling out due to the delays caused.
A property conversion loan to convert a house into a HMO may be the solution.
In this case, the lender will provide you with a bridging loan allowing you to secure the property without planning permission; these bridging loans can lend up to 75% loan to value.
Once the property is secured, this then gives you the opportunity to obtain the required planning permission to convert the property into a HMO, without causing delay to the purchase.
When planning permission is granted, these lenders can then provide a works funded facility, where up to 100% of the cost of works can be funded.
How can Advocate Finance help?
Advocate Finance are experts in arranging loans for converting a house into a HMO, our experienced advisers can provide an illustration outlining the loan for your individual circumstances.
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