Case Study: Rapid Bridging Loan for High-Yield HMO Conversion in Manchester

The Property Scenario

A regional property developer identified a substantial multi-storey commercial building in Greater Manchester with excellent potential for conversion into a high-yielding House in Multiple Occupation (HMO). However, the seller demanded a rapid completion exchange, meaning the developer risked losing the property to a competing buyer if they waited for long-term commercial mortgage underwriting arrays to process.

The Financial Structure

Operating under the regulatory oversight of Lending Choice Limited, our specialist brokers designed a flexible corporate bridging facility. We secured a gross loan amount of £485,000 at an asset-backed 75% LTV, incorporating the full purchase price and a partial allocation for development works. The interest was rolled up into the facility over a 12-month term, removing any requirement for monthly out-of-pocket servicing charges.

The Exit Strategy & Completion

We completed the funding placement in 9 business days, allowing the developer to successfully close the purchase and immediately deploy contractors. Once the building was converted and fully tenanted, the developer executed their exit strategy by refinancing the property onto a specialist commercial term mortgage based on the newly enhanced investment yield.

Learn more about our local funding access via the Bridging Loans Manchester portal, or contact our expert Bridging Loans desk to secure bespoke indicator terms today.