Arranging Bridging Finance For An HMO Property Acquisition In Kent

What was the situation?

Our client, a foreign national based in the Middle East, approached LDN Finance with an exciting investment opportunity requiring a bridging facility to purchase a substantial HMO property in Kent.

The property consisted of 15 unmodernised units, presenting significant potential for value enhancement through refurbishment and ‘bringing up to date’. Understanding the income-generating potential of this large-scale HMO, our client was seeking maximum leverage for the property acquisition to preserve their capital for additional investments. This was a strategic move to build their UK property portfolio, but they needed a finance partner who could work with their international profile and provide the high loan-to-value ratio essential to their investment strategy.

What was the issue?

The primary challenge was finding a lender willing to work with a foreign national residing in the Middle East, whilst also providing the high leverage our client required. Many UK lenders have restrictive policies regarding overseas residents, particularly those based in certain regions, which significantly limited our client’s financing options.

Additionally, securing high leverage on an unmodernised HMO property required a lender with appetite for both the property type and the client’s specific circumstances.

The combination of the client’s residency profile and the need for maximum leverage created a complex financing challenge that required specialist expertise and strong lender relationships.

What was the process?

We immediately identified that this case required a bespoke approach, focusing on lenders with flexible lending criteria and experience with international clients. Drawing on our extensive network, we approached a specialist lender who – whilst not typically lending to foreign nationals in the Middle East – was known for considering exceptional cases. We prepared a comprehensive client profile package, including enhanced due diligence documentation and detailed risk assessment materials.

Through our established relationship with this lender, we successfully negotiated a loan by presenting a thorough case that demonstrated our client’s creditworthiness and investment experience. We went above and beyond by coordinating all compliance requirements and ensuring seamless communication between our Middle East-based client and the UK lender.

What was the solution?

We successfully secured an exceptional 90% Loan-to-Value (LTV) facility at an annual interest rate below 9.5%. These were outstanding terms considering both the client’s profile and current market conditions.

This high-leverage solution meant our client could preserve the majority of their capital for simultaneous property acquisitions, significantly accelerating their UK investment strategy. The client was thoroughly impressed with the outcome, particularly given their understanding of the financing challenges their residency profile typically presents. They expressed great satisfaction with both the leverage achieved and the competitive pricing secured, enabling them to expand their property portfolio more aggressively than initially anticipated.

Need help securing bridging finance? Our experts are on hand to assist. Call 020 3903 9875 to speak to an adviser, or use our online contact form.