Options were thin for our client, an experienced Sui Generis HMO investor, who faced setbacks after a low and inaccurate valuation stalled their refinancing plans. Fortunately, they found Simmonds Mortgage Services.
Understanding the challenge
Finding the right lender isn’t always easy for properties with unique configurations or complex valuations. That was especially true for our client, Ms Marsh, a property investor who manages large Houses in Multiple Occupation (HMOs), including some ex-council homes, typically with 9 to 10 bedrooms.
As a ‘Sui Generis’ investor, her properties often fall outside the standard planning classifications due to their size and nature. Lenders tend to be specialists and few and far between.
Ms Marsh approached us recently and asked us to help with a complex HMO investment. She faced significant hurdles in refinancing one of her HMO properties due to a low and inaccurate investment valuation from an alternative broker. This valuation left Ms Marsh in a tricky position with an undervalued property, a stalled refinancing process, and no clear way forward.
Thanks to our 5-star service and extensive understanding of specialist HMO mortgages, we found a mortgage solution that suited her complex situation.
Our approach
At Simmonds Mortgage Services, we believe in going above and beyond for our clients, especially those facing unique challenges like Sui Generis HMO financing. We immediately stepped in to assess the situation and find a more appropriate solution.
We knew that the key to unlocking the right mortgage for Ms Marsh was ensuring a fair and accurate investment valuation. Unlike a traditional property valuation, a yield-based or commercial valuation considers the property’s rental income and market demand, which is crucial for our HMO clients.
We liaised directly with our experienced network of specialist HMO valuers to ensure that a new valuation was fairly assessed based on rental yield, occupancy rates, and accurate market data. Within one week, we had secured a Decision in Principle (DIP) and began a new application with a lender far more suited to the unique nature of our client’s property, exceeding all expectations.
The solution
Within four weeks, our client received a formal mortgage offer that was £400,000 higher than the initial undervalued figure provided by the previous lender. This allowed the client to release more funds, which is vital for professional investors looking to leverage and maximise borrowing across their portfolio to expand and purchase more property.
A message from Ms Marsh:
If you want a straight talking, all action broker I couldn’t recommend Simmonds Mortgages enough. Where brokers have lost me thousands in the past Andrew has stepped in and filled the frustrating void. Will be using again – can recommend ⭐️⭐️⭐️⭐️⭐️
Simmonds Mortgage Services: More Than Just Mortgages
At Simmonds Mortgage Services, we specialise in tackling the most complex property investments, including Sui Generis HMOs. To us, success is measured not just by securing competitive mortgages but by the peace of mind and security we bring to clients like Ms Marsh.
If you are having difficulty securing the right mortgage for your needs, let us help. Contact Simmonds Mortgage Services today, and let’s find the mortgage you deserve.