Anthony’s story - how Foundation helped with a large HMO

Anthony is an experienced landlord who’s been steadily growing his portfolio over the years. He owns a mix of properties through his limited company (SPV) and has now set his sights on his biggest project yet, a 20-bedroom HMO.

The property is in an area he knows well and is close to a busy hospital, making it an excellent investment opportunity. The property is valued at £2.2 million, with Anthony needing a £1.3 million loan to help fund the purchase. The HMO would generate £12,000 a month in rent, making it a strong addition to his portfolio.

But many lenders would hesitate at the size of this HMO. That’s where Foundation made the difference.

At Foundation, we don’t believe in putting limits on opportunity. That’s why we have no upper limit on the number of bedrooms for HMOs. Whether it’s a six-bed house share or a 20-bedroom property like Anthony’s, we’re happy to consider it, as long as the case stacks up.

For larger properties like this, we carry out a commercial valuation to confirm the full investment value and rental potential. This helps ensure both Anthony and our team are confident in the long-term strength of the deal.

And even though the annual rent exceeds £100,000, which might cause issues with some lenders, we were more than happy to accept a common law tenancy agreement for this case.

Thanks to this, Anthony was able to move ahead with his biggest property deal yet, knowing he had the right finance partner in his corner.

If you’ve got a case like Anthony’s, or something unusual that needs a closer look, give your Foundation regional area manager a call, we’re always happy to have a chat about how we can help.

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