As a specialist mortgage adviser to property investors and developers, we’re active in the Manchester HMO market helping many clients secure a property and fund the build work to create beautiful co-living spaces. Ideally, I like to get to know our clients before they find a project, so we can support them with the process and prepare them for the steps that will follow. As an investor, you’ll also want to understand your finance numbers early on, so you can build them into your overall stacking of the deal (or not!).
Let’s face it, no one likes providing paperwork so we aim to provide our clients with a comprehensive list of what’s needed in one go at the start of the process.
If you intend to use a mortgage or finance to buy and/or build your HMO here are a few things you’ll need to have in place straight away to ensure that the unnecessary complication.
I can’t stress this one enough. Typically, we finance 65% to 75% of the purchase price and 100% of the cost of works. Fundamentally we need to know the purchase price, the cost of works and what the end value (or GDV) will be. If your estimated numbers aren’t realistic and can’t be agreed by an independent surveyor then it could mean putting more cash into the deal, or even that the project isn’t viable.
I can’t stress this one enough. Typically, we finance 65% to 75% of the purchase price and 100% of the cost of works. Fundamentally we need to know the purchase price, the cost of works and what the end value (or GDV) will be. If your estimated numbers aren’t realistic and can’t be agreed by an independent surveyor then it could mean putting more cash into the deal, or even that the project isn’t viable.
Ensure you have a schedule of works drafted and ready. This should show a month-by-month breakdown of what works are going to be done and the cost of each element.
PLANS & DRAWINGS
It’s helpful to have plans or drawings showing the work to be done and the layout. The more extensive the work the more important this is.
KEY PEOPLE CONTACT DETAILS
We will need to know who the key people involved are including any architect, builder, solicitor, selling agent, project manager, etc. You may be asked for details of the experience of the builder and project manager to ensure they can deliver.
CASH
Evidence of the cash contribution is required. This can be your funds and/or those from investors.
PERSONAL DOCUMENTS
What is required will depend on your specific circumstances but as a minimum, it will include proof of identification and address, evidence of income, bank statements, and a credit report.
This list isn’t exhaustive, but it’s a good starting point. Of course, if you’re working with the PPB team we will liaise with them directly on your behalf and handle most of the heavy lifting between us.
If you’re struggling with any of the above or want to chat through a specific property deal, get in touch for an informal and confidential chat.
