If you are considering a buy to let property, you will no doubt be thinking about ways to maximise your rental income. In a recession, landlords are always looking for ways to maximise their properties to deliver the best possible returns. One way to achieve this is by purchasing an HMO, or house in multiple occupation.
Dividing a home into multiple individual rooms that can be rented to individual tenants is a great way to maximise your returns. We can help guide you through the process of identifying and securing funding to purchase this type of property using a buy-to-let mortgage.
The real money is in identifying potential properties, converting them to HMOs and then securing the necessary permits. However, this venture will require some capital upfront. This is where bridging finance can help. Although costly to secure, bridging finance makes sound financial sense in the long-term.
Bridging finance will be taken alongside the mortgage to purchase the property. You would then convert the property and remortgage after the required time has passed, typically 6 months. At this stage, you would pay back the bridging finance and remortgage the property at the new higher value. When you are thinking about the long-term strategy, this can be an effective way to maximise space in a buy to let.
To find out more about HMO properties and bridging finance, get in touch with Niche Mortgage Info today. We can guide you through the process and connect you with the brokers who will be able to find you the best possible deal.