Related Resources:
Case Study: Ilkeston 4-Bed Terrace to 6-Bed Professional HMO
Case Study: Ilkeston 4-Bed Terrace to 6-Bed Professional HMO
A four-bedroom terrace is reconfigured into a six-bedroom professional HMO, with 100% of the refurbishment and a large share of the purchase funded by Ramsay & White.
The story
This investor was focused on recycling capital efficiently while building a portfolio of high-performing HMOs.
Rather than purchasing a completed investment, they created value through refurbishment and reconfiguration, taking a four-bedroom terrace and turning it into a six-bedroom professional HMO. The property investment company managed the project throughout, with Ramsay & White providing finance across both the purchase and the works.
Funding solution
- Purchase price: £179,000
- £70,150 towards the purchase
- 100% of the £205,000 refurbishment costs funded
Outcome
- Converted into a 6-bedroom HMO with 5 en-suite rooms
- GDV: £615,000
- Rental income: £5,500 pcm
Key result
A substantial uplift in value alongside strong rental income, allowing the investor to continue scaling their portfolio.
Interested in HMOs? Here is how to maximise your returns
Professional HMOs remain one of the most effective ways to increase the rental income from a single property. Industry figures suggest HMO landlords can earn significantly more gross rental income than standard single-let landlords, and deals like this one show what is possible when the right property is paired with the right finance.
The key is structuring the funding so that both the purchase and the refurbishment are covered. That allows you to add value, refinance on the improved figure and recycle your capital into the next project, while the finished HMO delivers strong monthly cash flow in the meantime.
We regularly break down real HMO conversions, deal structures and finance strategies in our recent webinars and videos. You can watch them on our YouTube channel here: youtube.com/@ramsayandwhite.
How Ramsay & White can help
This project is a good example of what the right funding structure makes possible. The client worked with a property investment company that managed the process from end to end, while Ramsay & White structured the finance behind it, funding the purchase and the refurbishment so that as little capital as possible was left tied up in the deal.
The aim on deals like this is always the same. Uplift the value of the property through refurbishment, refinance so the investor can pull most or all of their money back out, then use that recycled capital to go again on the next project while keeping the monthly rental income.
If you are working on an HMO conversion, looking to scale a portfolio, or you want to understand how a purchase and refurbishment could be funded together, our team is here to help.
Industry Recognised Expertise
Our award winning team stays up-to-date on the latest products, rates, and regulations, so you can be confident that you're getting the best possible advice.
Streamlined Process
We make any property financing stress-free by guiding you every step of the way. We'll work with you to gather the required documentation and will be there to answer any questions you may have throughout the process.
Competitive Rates
As a leading expert in property finance in the UK, we have access to a wide range of mortgage products and lenders. This allows us to offer competitive rates and terms that may not be available to individual borrowers.
Customer Oriented
We understand that every client's needs are unique, which is why we take the time to understand your goals and financial situation, and work with you to find a financing solution that fits your needs.
Continued Support
After completion, we provide continued support to all of our clients, answering any questions you may have and help with any of your future property finance needs.
Experts in Property Finance
