The Client
A property investor with a beautiful large home was looking to reconfigure it thoughtfully into multiple self-contained investment units (similar to an HMO structure), with one retained as the main family residence.
It was a complex restructure for mixed-use which requires a combination of regulated and non-regulated funding.
The Challenge
Due to the proposed mixed use layout, questions were raised around whether the scheme would be treated as an HMO and how that would affect mortgage options.
Due to these complexities, the funding required careful structuring taking these points into consideration:
- Reconfiguring the property into multiple self-contained units, with one unit retained for personal use
- Consideration of whether the property could be structured or valued as a mixed-use or semi-commercial asset
- Funding required to support both redevelopment and long-term financing objectives
- Clarity was required on licensing requirements and how these may impact lender criteria
- Multiple stakeholders involved, including planners, lenders and legal teams
The Solution
Working alongside our lending partners, we arranged a tailored, dual-track funding strategy to align with our client’s goals:
- Advised on structuring the funding in a way that aligned with HMO and mixed-use lending criteria
- Structure short-term and longer-term finance combination, to support the different stages of the project
- Work closely with specialist lenders able to support semi-commercial or complex residential mortgage structures
- Coordinate legal and valuation teams to ensure all requirements met efficiently
- Maintain clear communication with all parties, keeping the process moving
- Provide guidance on licensing requirements and how these work with funding options
The Outcome
With the funding in place, the project progressed as planned, resulting in a reconfigured property that supports both the client’s living requirements and their long-term investment goals.
“Projects like this show why structuring is everything. You have to think several steps ahead; exits, legal coordination, timelines, while keeping communication tight throughout. I’m delighted for the client. It’s an exciting transformation and they now have a strong platform in place to move forward.” Richard Stock, Capital B Director
Why Choose Capital B Property Finance?
These type of projects often raise questions around HMO mortgages, semi-commercial lending, licensing requirements and mixed-use property finance.
If you’re looking at complex restructures, mixed-use splits or combining regulated and non-regulated funding, understanding how these factors work together can make a significant difference early on. We’re always happy to have a conversation.
When the structure is right, even the complex can feel more straightforward.
