Large HMO with commercial unit beneath
The client had just finished the development of a 10 bed HMO with commercial unit beneath and was now on the look out for the best option to exit on to long term BTL finance. He had considered whether to split the title and have two loans and was not sure which would be the cheapest from an ongoing debt servicing perspective.
Whilst we couldn’t advise on the legal aspects of splitting the title, we were able to illustrate how the different options might stack up. Either through taking one mixed-use commercial investment loan across the whole building, or by taking a small commercial loan, alongside a larger BTL loan for the HMO. Ultimately, we were able to secure a single mixed-use loan at a rate which made it not worthwhile in splitting the title, thus saving the client the hassle, expense and time of that extra legal work.
